Gayatri Suresh Mahajan. (Partner) (29 Points)
06 April 2011previous profits of a partnership firm 10 lac kept as FDs . used in current year for stock purchasing. after realisation of funds , partners took the partial funds to their personal a/cs . remaining funds are in as working capital.
Now one partner is retiring. How will the remaing funds with the firm, be seen in balance sheet? Do those funds go to retiring partner's a/c , in his share of partnership? or will it be the firm's asset?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 06 April 2011
any profit is divided in partner's capital account at every year end, in appropriation account,
so the FD is also accounted in the partner's capital account, and there is no such litigation regarding bok value,
in book value the partner's entitlement is limited to his share as per balance sheet.
vignesh
(B-com CS CA-Final CFA-level 1 candidate)
(1053 Points)
Replied 12 April 2011
profit is divided in partner's capital account at every year end in profit ans loss appropriation account...FDis nothing but the profit...so it will b given to retiring partner in PSR
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