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Dissolution of Partnership

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Accounting for Partnerships

MS: Pembubaran Perkongsian · EN: Dissolution of Partnership · ZH: 合伙解散

Meaning

Dissolution of a partnership is the process of ending the partnership business when it ceases to operate. All assets are sold, liabilities are settled, and the remaining cash is distributed to the partners according to their capital account balances.

Example

Jaya Partnership is dissolved when a partner retires; its assets are sold, creditors are paid, and the balance is divided according to Jamal's and Karim's capital balances.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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