17 November 2010
A parntership firm constitued on 03.05.2009. Partnership firm could not start business up to 31.03.2010. But expenditure incurred during this period Rs. 4,20,212/-as a staff salary, office rent.It means firm incurred loss of Rs. 4,20,212 . What will be the treatment of this loss during the f.y. 2009-10. whether this loss will be distributed between partners in profit sharing ratio or whether loss will be capitalized as a pre-operative expenses and will be defferred in next 5 financial year if firm start the business in next financial year.
18 November 2010
Partners share both profits and loss in the manner provided in their partnership deed. If there is no such deed the provisions of the Indian Partnership Act will apply
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