The term‘dissolution’ stands for discontinuation. Under the Indian Partnership Act 1932, the dissolution may beeither of partnership or of afirm.
Dissolution of partnership refers to the change in the existing relations of the partners. The firm continues its business. It may take place on admission/retirement/death/expulsion/in-solvency of a partner or on change in the profit sharing ratio.
Dissolution of a firm means the dissolution of partnership between all the partners of the firm alongwith the termination of firm’s business. It may take place in any of the following ways: