Ownclasses

Distinguish between 'Dissolution of Partnership' and Dissolution of Partnership Firm' on the basis of closure of books.

Answer

Following is the difference between dissolution of partnership and dissolution of a partnership firm.

Basis of Difference

Dissolution of Partnership

Dissolution of Partnership Firm

Settlement of Assets and liabilities

Assets and liabilities are revalued and new balance sheet is prepared.

Assets are sold and liabilities are paid off.