In our partnership firm, there is a loss of 1.26 lacs in current year. we, both partners, want to dissolve the partnership. in our case what is the treatment of loss, should we debit it to partner's capital a/c in profit/ loss sharing ratio?
1. If we debit the capital a/c by loss then how it will reflect in ITR? 2. in case of loss, is audit compulsory? 3. if we dissolve it during the year then how to surrender PAN and when?
02 November 2017
1. Debit the loss to capital account as per your LOSS sharing ratio. 2. Does your partnership business fall under eligible business u/s 44AD 3. Once you dissolve your firm, you can surrender PAN
02 November 2017
Sir, There is NIL income / receipt in current year. only rental expenses of 1.26 lacs in current year. Net loss of 1.26 lacs debited to partner's capital a/c on dissolution of firm. Please advice is it a case of compulsory audit or not ?
Firm was earning through commission in previous years. and no audit was conducted in previous years.
15 December 2017
Dear All We had just dissolved our partnership firm duly supported by Deed of Dissoluton As There is no receipt / sale / income in current financial year 2017-18 except rental expenses of Rs.1.26 lacs, which are debited to partner's capital account. Now, Please guide the procedure to surrender PAN and how to file ITR of current F.Y. 2017-18. Can we surrender PAN before filing ITR of Current F.Y. or we have to wait till next year to file ITR and then Surrender of PAN.
CAclubindia
