Give any one difference between reconstitution of a firm and dissolution of a firm ?

Dear Student,

Reconstitution of a firm basically refers to re-forming of the partnership due to change in any of the events like change in profit sharing ratio, admission/death/retirement of partners, or any other changes in their contract/partnership deed.

But dissolution of the firm refers to winding up of the business as well as partnership firm.

In other words, reconstitution would result into reforming of partnership firm with certain changes & dissolution would result into its closure.


Regards

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Recons. of firm may be because of change in profit sharing ratio,admission,retirement etc of partner.or we can say that partnership may be reconstituted due to which firm is formed again.
But in diss. of firm,partneship as well as firm comes to an end.
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