NCERT Solutions for Class 12 Accounting Chapter 5 Dissolution of partnership firm

If a relationship between all the partners of firm is dissolved, then it is known as dissolution of firm. In case of dissolution of partnership of firm, the firm ceases to exist. The process includes the discarding and disposing of all assets of firm or and settlements of accounts, assets, and liabilities. As we know that after the dissolution of the partnership firm, the existing relationship between the partners’s has to change. But, the firm continues its activities.