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CMA Intermediate · Financial Accounting · Dissolution of Partnership Firms including Piecemeal Distribution

A registered firm of Ramesh and Suresh is dissolved. Which statement about recording the dissolution with the Registrar of Firms is correct as per the Indian Partnership Act, 1932?

When a registered firm is dissolved, any person who was a partner immediately before the dissolution, or an agent specially authorised for the purpose, may give notice to the Registrar specifying the date of dissolution. The Registrar records it in the Register of Firms alongside the earlier statement.

  1. AOnly the Registrar may initiate the record of dissolution
  2. BNotice must be given by the court appointed liquidator only
  3. CAny person who was a partner immediately before dissolution, or a specially authorised agent, may give notice specifying the date of dissolutionCorrect
  4. DNotice can be given only by the partner who held the largest capital

Explanation

Section 63(1) permits any person who was a partner immediately before the dissolution, or the agent of such partner specially authorised in this behalf, to give notice to the Registrar specifying the date of dissolution. The Registrar then records it in the Register of Firms. Capital size and liquidators are irrelevant.

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