Itr & tax audit in case of partnership firm dissolution

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2016 Respected Members,

Partners mutually dissolve the firm on 12.01.2016 and made their settlement.

My Question is how to final books. Should we prepare balance sheet as at 12.01.2016 and P & L Accordingly
OR
Realisation Account .

If Realisation account, then how to file ITR since there will be no balance sheet in that case.

Please Reply

Thanks

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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10 May 2016 First of all, balance sheet as on 12.01.2016 will be prepared. After that on that basis, realisation account will be prepared. You can file income tax return on the basis of balance sheet as on 12.01.2016.