Dissolution and final settlement

Dissolution and final settlement

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Accounting for Business (ACC 251)

Unit 4: Dissolution of a Partnership Firm and Piecemeal Distribution

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of dissolution and final settlement.
• Apply the relevant accounting or audit procedures using the stated reporting framework and interpret the resulting evidence.

Curriculum Scope

• Concept
• Closing the books of account and final settlement
• Accounting for dissolution: Settlement of partner’s capital accounts when the firm and all the partners are solvent, Settlement of account when a partner is insolvent with or without using the rule of Garner Vs Murry

Detailed Microsyllabus

1. Dissolution

   1. Realization of assets and settlement of liabilities.
   2. Close books and partner accounts.
   3. Distinguish dissolution from ordinary reconstitution.

2. Solvency cases

   1. Firm and partners solvent.
   2. Partner insolvency with or without the source-named Garner Vs Murry rule.
   3. Apply the prescribed allocation convention and verify settlement.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 67–69.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.