Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities.
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Solution
| Basis | Dissolution of partnership | Dissolution of firm |
| Settlements of Assets and Liabilities |
Assets and Liabilities are revalued and the gain or loss is distributed to all partners in old ratio. | Assets of the firm are realized and liabilities are settled. Balance amount, if any is distributed among all partners. |
Concept: Dissolution of Partnership Firm
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