12 April 2010
Hi Rajesh The answers are as under: 1. when a new partner is admitted to the firm, he gets share of profit. this share is sacrificed by the old partners in the specific ratio. Hence they get the benefit of goodwill in the same ratio by crediting the same to their capital A/c in the Ratio of Sacrifice. 2. Sec. 37 deals with the share of profit of the deceased partner from the date of his death to the date of final settlement with his legal heirs in case the dues are not settled immediately upon the death of the partner.legal heirs hv choice between the following two : 6% p.a.simple interest OR profit from death to settlement multiplied by capital of deceased partner as on death (incl goodwill)/total capital employer as on death (incl goodwill) 3. JLP can be taken either severally in the name of the individual partners or one policy jopintly in the name of all partners. there are three different methods of treating JLP. Regards, CA Shakuntala Chhangani
CAclubindia
