what is a dissolution of a partnership and how do you treat the accounts?

Question

how you close off the accounts and the distributions to the partners.

Answer 1

The answer depends on the state in which you are in. Generally speaking, dissolution of a partnership occurs when one of the partners dies, is forced out, or voluntarily leaves the partnership. Once one of these three things happens (with the possible exception of death), in most jurisdictions the partnership is considered to have dissolved, thereby initiating the winding up process of the partnership assets. Assets are distributed according to the partnership agreement or according to the partner's respective shares. Once the partnership is wound up, the remaining partners, if they like, can reform a new partnership.

With respect to death of a partner, in many states this does not dissolve the partnership. Rather, the executor of the deceased partners estate is holds the deceased share in the partnership (usually in trust) for the heirs and beneficiaries of the deceased partner. In some cases, the partnership agreement has a first right of refusal, meaning that the remaining partners have the right to purchase back the dead partners shares at fair market value. If that right is not refused or exercised, however, the partnership dissolves and the partnership is wound up in accordance with the process mentioned above.

Answer 2

Dissolution of partnership is dissolving of the partnership in the busssinessor brinng the partnership bussiness to an end...the shares are distributed as per law...or as mentioned in the memorandum of association...which is formed at the biginng of the partnership or busines...

Answer 3

You need good legal advice on this one, especially if there's significant money in the accounts.

Answer 4

Cancel them out against their equity.