Dissolution of a Partnership Firm
In the NCERT Accountancy textbook for Class 12, this topic covers the closing of a firm when partners decide to end the business or the firm is dissolved by law or court. You learn the modes of dissolution, the settlement of accounts with outside creditors, loans and partner dues, and the preparation of the realisation account that records asset sales and liability payments. The lesson works through transfer of reserves, treatment of unrecorded items, and final cash distribution, showing how books are wound up fairly and completely.
Try a free lesson