Dishing out for party (7)
I believe the answer is:
shindig
'for party' is the definition.
(shindig is a kind of party)
'dishing out' is the wordplay.
'out' is an anagram indicator (out can mean wrong or inaccurate).
'dishing' anagrammed gives 'SHINDIG'.
(Other definitions for shindig that I've seen before include "Large, lively party" , "Bash" , "Lively party, knees-up" , "Lively celebration (informal)" , "Large and noisy party or quarrel" .)