07 November 2014
In dissolution problem I solved yesterday there was a concept which says Minor share in the losses of firm is only to the extent of his capital. In the problem minor was having unwithdrawn profits. And those profits were used to write of part of losses in realization A/c. And remaining loss was shared by other major partners.
I wanted to know which section it is because I read the bare act it says minor has only share in the profits but there was no mention about his share in loss is extent to his capital.
07 November 2014
section 30(1) itself restrict admission of minors only for sharing the benefits of the partnership. whereas section 4 defines partnership as agreement to share profits. the word benefit dont include loss whereas word profit does.
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