Dissolution of a Firm
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What is the meaning of 'dissolution of a firm' under the Indian Partnership Act, 1932?
Dissolution of a firm means the discontinuation of the partnership relationship among all the partners of the firm, effectively ending the firm's existence as a going concern.
What happens to the liability of partners for acts done before dissolution of a firm?
Partners remain liable for all acts done before dissolution.
What is the difference between dissolution of a firm and dissolution of partnership?
Dissolution of partnership means a change in the relationship of partners (e.g., retirement or death of one partner) while the firm continues, whereas dissolution of a firm means the complete winding up of the firm's business and the termination of all partnership relations.
Which section of the Indian Partnership Act deals with the sale of goodwill after dissolution?
Section 55 deals with sale of goodwill after dissolution.
Under which section of the Indian Partnership Act, 1932, are the modes of dissolution of a firm enumerated?
The modes of dissolution of a firm are enumerated under Sections 40 to 44 of the Indian Partnership Act, 1932, covering dissolution by agreement, compulsory dissolution, contingent dissolution, and dissolution by court.
What is the priority order for payment of firm's debts upon dissolution?
Firm debts are paid before partners' private debts.
What is dissolution of a firm by agreement under Section 40 of the Indian Partnership Act?
Under Section 40, a firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners, allowing voluntary dissolution by mutual agreement at any time.
Under Section 48, which losses are paid last upon dissolution of a firm?
Capital deficiencies are paid last upon dissolution.
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