Accounting for Dissolution of Partnerships
Acknowledgements
In the name of Allah, the Beneficent, the Merciful. First of all we are very thank full to Allah who provide us knowledge, energy and skills to avail opportunities and increase our knowledge and experience by completing this assignment. For the successful completion of assignment we are thankful to organization’s staff, who given us in-depth knowledge of subject and equipped us with current market trends. We were not able to accomplish this task without the help of class teacher. We are thankful to our parents how gave us opportunity to study and provide a better living standard.
ACCOUNTING FOR DISSOLUTION OF PARTNERSHIPS
Introduction
Section 36 to 39 of the partnership Act underlines the various circumstances under which a partnership may be dissolved. These include;
i. Dissolution by agreement- This is where all the partners duly agree to terminate the partnership. ii. Dissolution by illegality- This is where the happening of an event makes it unlawful for the business of a partnership to be carried on. iii. Dissolution on happening of some events- A partnership is dissolved in any of the following ways unless there is a contract between the partners to the contrary;
• By the expiry of a specific period
• By the bankruptcy of a partner
• By the death of a partner
• By the completion of the adventure or undertaking
• By any partner giving notice to the other partners to dissolve the partnership iv. Dissolution by the court- A court may order dissolution of partnership on the application of a partner in any of the following;
When a partner becomes of unsound mind
When the business can only be carried on at a loss
When a partner is guilty of misconduct affecting the business of the firm
When a partner suffers from permanent incapacitation and cannot perform his/her duties as a partner
When a partner commits willful or persistent breaches of agreement
Settlement of accounts on
In the name of Allah, the Beneficent, the Merciful. First of all we are very thank full to Allah who provide us knowledge, energy and skills to avail opportunities and increase our knowledge and experience by completing this assignment. For the successful completion of assignment we are thankful to organization’s staff, who given us in-depth knowledge of subject and equipped us with current market trends. We were not able to accomplish this task without the help of class teacher. We are thankful to our parents how gave us opportunity to study and provide a better living standard.
ACCOUNTING FOR DISSOLUTION OF PARTNERSHIPS
Introduction
Section 36 to 39 of the partnership Act underlines the various circumstances under which a partnership may be dissolved. These include;
i. Dissolution by agreement- This is where all the partners duly agree to terminate the partnership. ii. Dissolution by illegality- This is where the happening of an event makes it unlawful for the business of a partnership to be carried on. iii. Dissolution on happening of some events- A partnership is dissolved in any of the following ways unless there is a contract between the partners to the contrary;
• By the expiry of a specific period
• By the bankruptcy of a partner
• By the death of a partner
• By the completion of the adventure or undertaking
• By any partner giving notice to the other partners to dissolve the partnership iv. Dissolution by the court- A court may order dissolution of partnership on the application of a partner in any of the following;
When a partner becomes of unsound mind
When the business can only be carried on at a loss
When a partner is guilty of misconduct affecting the business of the firm
When a partner suffers from permanent incapacitation and cannot perform his/her duties as a partner
When a partner commits willful or persistent breaches of agreement
Settlement of accounts on