Question

meaning and Differentiate between dissolution of a partnership and withdrawal of a partner With examples?​

Answer 1

Meaning:

Dissolution of a partnership:

It is the termination or end of every contractual tie between partners. This indicates that the operation of a partnership is going to end. It is breaking an association between all the partners.

Withdrawal of Partner:

In a partnership firm, Withdrawal of partner are of two types,

Voluntarily & Non-voluntarily withdrawal of partner

A voluntary withdrawal means the partner merely wants to move on for personal reasons, such as they are retiring or they feel they can't remain indicated to the partnership.

A non-voluntary withdrawal means a partner was forced to withdraw without his consent.   

Difference between the dissolution of a partnership and Withdrawal of partner:

• After the dissolution of partnership firm, the business of a firm gets discontinued. whereas, After the withdrawal of a partner, the business of firm continues there is no closure.
• After the dissolution of firm, the relationship between the partners ceases to exist. Whereas, After the withdrawal of a partner, a relationship between the existing partners continues to exist.
• After the dissolution of the firm, the books need closure as the business ceases to continue. Whereas, After the withdrawal of a partner, there is no closure of books as the business continues.