PARTNERSHIP DISSOLUTION

DISSOLUTION – the change in the relation of the partners caused by any partner ceasing to
be associated in the carrying out of the business;
Refers to the termination of the life of an existing partnership
May be followed by:
1. FORMATION OF A NEW PARTNERSHIP
- dissolution by change in ownership structure
- new partnership continues the business activities of the dissolved partnership
without interruption
2. LIQUIDATION
- refers to the termination of the business activities carried on by the partnership &
winding up of partnership affairs preparatory to going out of business

CONDITIONS RESULTING TO PARTNERSHIP DISSOLUTION

1. ADMISSION OF A NEW PARTNER
a. Purchase of interest from one or more of
b. Investment or asset contributions to partnership
2. RETIREMENT/WITHDRAWAL OF A PARTNER
3. DEATH/INCAPACITY/BANKRUPTCY OF A PARTNER
4. INCORPORATION OF A PARTNERSHIP

ADMISSION BY PURCHASE
the original partners
Pro-form entry
Name of seller, Capital
Name of Buyer, Capital