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Question
Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ based on:
- Settlement of assets and liabilities
- Economic relationship
Solution
| Basis of Distinction | Dissolution of Partnership | Dissolution of Partnership Firm |
| Settlement of Assets and Liabilities | Assets are revalued and liabilities are reassessed. | Assets are sold and liabilities are paid off. |
| Economic relationship economics. | The economic relationship between the partners continues, though in a changed form. | The economic relationship between the partners comes to an end. |
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