Dissolutions situations, Financial Accounting

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Dissolutions situations

There are two situations that need to be considered under dissolutions. These are:-

1) Where the assets are sold at once (one single transaction)
2) Assets are sold on piece meal basis.

Under this situation, the partners are able to get a single buyer who buys al the assets in a single transaction. The buyer could be an individual, sole trader, another partnership or a company. this kind of situation is straightforward because the partners can be able to determine profit or loss on dissolution immediately.


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