Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of ‘Settlement of Assets and Liabilities’. (Foreign 2014, 2018, CBSE 2019)

SOLUTION

Basis	Dissolution of Partnership	Dissolution of Partnership Firm
Settlement of Assets and Liabilities	Assets are revalued and liabilities are reassessed.	All the Assets other than cash are realised and liabilities are paid.