Dissolution of Partnership: Fill In the Blanks

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 12, 2023

1. At the time of admission, a partnership firm is dissolved if the business is .

2. All the accounts are settled among partners and creditors at the time of of a business.

3. Before anything else, the of the firm will be settled out of the sources of the business.

4. Admission of a partner leads to the termination of the and not the dissolution of the .

5. A court may dissolve a firm if a partner a suit claiming that one of the partners is of mind.

6. Partners are liable to settle the accounts payable account, even from their Funds, if they are solvent.

7. from the partners will be paid off before the settlement of the partners capital.

8. On dissolution, the partners capital balance will be paid to them .

9. The retirement/death of a partner will not lead to dissolution if the remaining partners to continue the firm.

10. If all partners mutually decide to opt for dissolution, this will dissolve the .

Dissolution of Partnership: Fill In the Blanks FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.