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easyMCQCUET Accountancy 2023 20 June Shift 22026Accountancy
1 mark

The dissolution of a Partnership may take place due to:A. Retirement of a PartnerB. Death of a PartnerC. Insolvency of a PartnerD. Admission of a New PartnerE. Completion of the Venture, if the partnership was formed for that specific purposeChoose the correct answer from the options given below:

  1. A
    A and B only
  2. B
    A, B and C only
  3. C
    A, B, C and D only
  4. D
    A, B, C, D and E only

Solution & Step-by-step Explanation

Dissolution of partnership refers to a break in the old agreement and reconstitution of the firm with new terms among partners, without ending the entire business operations.\begin{itemize}\item Any structural alteration inside the partner core—such as \textbf{Retirement (A)}, \textbf{Death (B)}, \textbf{Insolvency (C)}, or \textbf{Admission (D)}—automatically terminates the old partnership framework and establishes a reconstituted one.\item \textbf{Completion of the specific venture (E)} also dissolves the operational mandate of that specific underlying original partnership contract.\end{itemize}Thus, all given scenarios (A, B, C, D, and E) bring about a dissolution of the original partnership arrangement.

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The dissolution of a Partnership may take place due to:A. Retirement of a PartnerB. Death of a PartnerC. Insolvency of a PartnerD. Admission of a New PartnerE. Completion of the Venture, if the partnership was formed for that specific purposeChoose the correct answer from the options given below:
A
A and B only
B
A, B and C only
C
A, B, C and D only
D
A, B, C, D and E only

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