Disolution

Dissolution:

The dissolution of partnership between all partners of a firm to called the dissolution of the firm this means there is a difference between dissolution of partnership and dissolution firm.

Dissolution of firm:

It means complete breake down or extinction of the relation ship of partnership between all the partners of a firm. If this breakdown or serverance of partnership relation is between a few and not all the partners.

Dissolution of partnership:

It involves only a change in the agreement in the partners.is called reconstituted firm thus retirement of a partner from a firm does not dissolve the firm. It merrely serves the partnership relationship with retiring partner and the continuing partners.