Dissolution of Partnership FirmClass 12 Accountancy Part 1 Assertion & Reason Questions

Assertion (A): The dissolution of a partnership between all the partners of a firm is called the dissolution of the firm.

Reason (R): Dissolution of a firm brings an end to the existence of the firm, and no business is transacted after dissolution except for activities related to closing the firm.

Assertion (A): The admission of a new partner results in the dissolution of the firm.

Reason (R): The dissolution of partnership changes the existing relationship between partners, but the firm may continue its business as before.

Assertion (A): On dissolution, a firm's books of account are closed.

Reason (R): In the case of dissolution of a firm, assets are sold and liabilities are paid off.