Question

Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities.

Answer 1

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.