Dissolution of Partnership Firm
In the NCERT Accountancy textbook for Class 12, this topic explains how a partnership firm is wound up and its books closed. You study dissolution by agreement, notice, insolvency or court order, the order in which outside debts, partner loans and capitals are settled, and the realisation account where assets are sold and liabilities discharged. The lesson treats firm debts versus private debts, commission or remuneration of the partner supervising disposal, and the final settlement of debit or credit capital balances through cash or current accounts.
Try a free lesson