Dissolution of Partnership Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 12, 2023

1. What is meant by the dissolution of a partnership?

2. Why and how are partnerships dissolved?

3. What steps are necessary to dissolve a partnership?

4. What is a realization account?

5. Explain the phrase "When all partners are solvent."

6. Explain the phrase "When one partner is insolvent."

7. If one partner becomes insolvent, in what ratio will the solvent partners bear the deficit?

8. State the decision of Justice Joyce in the case of Garner vs. Murray.

9. Explain the phrase "When all partners are insolvent."

10. What will be passed for creditors' liabilities at the time of dissolution when all partners are insolvent?

Dissolution of Partnership Q&A 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.