Question

Assertion (A): Dissolution of partnership firm refers to the dissolution of the partnership among all the partners of the firm.

Reason (R): Dissolution of partnership firm results into closure of business and hence dissolution of partnership also.

In the context of the above two statements, which of the following is correct?

Options

• Both (A) and (R) are true, but (R) is not the correct explanation of (A).

• Both (A) and (R) are true and (R) is the correct explanation of (A).

• Both (A) and (R) are false.

• (A) is false, but (R) is true.

Answer 1

Both (A) and (R) are true and (R) is the correct explanation of (A).

Explanation:

Dissolution of a partnership firm means the partnership between all partners ends. This generally leads to the closure of the firm’s business, thereby dissolving the partnership as a whole. Hence, the reason correctly explains the assertion that dissolution of the partnership firm results in dissolution of the partnership among all partners.