1. It means change in the partnership deed (or the
agreement) among the partners.
accounts are not closed, as there is only change in the existing agreement
between the partners.
case, the assets and liabilities are revalued.
5. There is no intervention by the court. It
is voluntary in nature. It may or may not
involve dissolution of the firm.
Dissolution of Partnership
that the business is wound up and the firm is dissolved. Business is discontinued, as the firm is dissolved.
2. Books of accounts are closed, as the business is
In this case,
all the assets are sold off in order to pay the liabilities of the business.
4. Dissolution of a partnership firm may be done
with the consent of the court.
It may be
voluntary (as per the discretion of the partners) or compulsory (as per the
order of the court).