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Dissolution of a partnership firm means
AChange in profit-sharing ratio only (typical) (typical)
BComplete winding up — all relations between partners come to an end
CAdmission of a new partner (typical) (typical) (typical)
DConversion to a company (typical) (typical) (typical) (typical)
Answer & Solution
Correct answer: B. Complete winding up — all relations between partners come to an end
1. Dissolution of FIRM means the business of the firm is wound up and the relationship among ALL partners ends.
2. Mere change in profit ratio or admission of a partner is reconstitution, not dissolution.
3. Conversion to a company is a separate procedure.
4. Hence (B) defines firm dissolution.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 6 "Dissolution of Partnership Firm", §6.1 ¶§6.1_