Q.Answer the following question in only 'one' sentence:
What do you mean by dissolution of partnership firm?

Dissolution of a firm (Section 39, Indian Partnership Act, 1932) is the dissolution of partnership between all the partners, ending the firm's business completely — assets realised, liabilities paid, accounts settled, books closed for good. This differs from Dissolution of Partnership, where only the relationship among some partners changes (admission/retirement/death) but the business continues under a reconstituted firm, with only a Revaluation Account adjustment and no final closing of books; every dissolution of a firm implies dissolution of partnership, but not vice versa. A firm may be dissolved (Sections 40–44): by agreement of all partners; compulsorily, on insolvency of all-but-one partner or the business becoming unlawful; on the happening of a contingency — expiry of a fixed term, completion of a v …