Wht s difference btween traditional & limited liablity frm ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2014 I want to know the difference between traditional firm & limited liability firm?

What is absorbed depreciation ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

10 December 2014 In a traditional firm the liabilities of the partners is UNLIMITED and NOT restricted to their share.

In a LLP, as the name suggests, the liability of the partners is LIMITED to their share.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

10 December 2014 additionally in traditional firm , in case if debts exceeds the assets of firm then partners are personally liable for paying them.

whereas this is not applicable for llp firm.

Upgrade to CAclubindia Pro. Subscribe Now!