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In which condition a partnership firm is deemed to be dissolved? - Accounts

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Question

In which condition a partnership firm is deemed to be dissolved?

Options

  • On a partner’s admission

  • On retirement of a partner

  • On expiry of the period of partnership

  • On loss in partnership

MCQ
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Solution

On expiry of the period of partnership

Explanation:

A partnership firm is deemed to be dissolved on expiry of the period of partnership if the partnership was formed for a specific time. This means that the firm automatically ends when the agreed period expires, unless the partners agree to continue. Other events like partner admission or retirement only lead to reconstitution, not dissolution.

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Chapter 5: Dissolution of Partnership Firm - OBJECTIVE TYPE QUESTIONS [Page 5.117]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 5 Dissolution of Partnership Firm
OBJECTIVE TYPE QUESTIONS | Q (A) 1. | Page 5.117
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