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SubjectPaid lesson

DISSOLUTION OF PARTNERSHIP

ClassNotes Team 5 MIN READUPDATED 13 JUN 2026

FINANCIAL ACCOUNTING SSS3 FIRST TERM        

WEEK 5 &6

DISSOLUTION OF PARTNERSHIP

Performance Objectives

Students should be able to:

1.       Know what is the dissolution of a partnership?

2.       Give five reasons why a partnership may be dissolved.

Contents

  1. Meaning: To dissolve a partnership means to bring an existing partnership business to an end. This entails selling the assets of the business, paying its creditors and other liabilities and sharing the balance of cash left between or among the partners in the agreed ratio.
  2. Reasons for Dissolution

Any of the following reasons can lead to the dissolution of a partnership.

  1. Retirement of partner i.e a partner gives notice of his intention to retire from the partnership
  2. Admission of a new partner
  3. …