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Partnership

435 views 1 replies

Divya Karthik

459 Points Joined February 2009

There is a partnership firm in which on ly 2 partners are existing out of 6.The form needs to make settlement to all the deceased partners.The partners have expired on various dates and it is impossible to prepare balance sheet & p & l on for each.Kindly advice how to proceed further.

Replies (1)

Guest

Even if partners have died on different dates, its possible to calculate the balance due to a particular partner as on the day when he died... If dearh takes place during the year, u can prepare his capital A/c and make credit of his share of profit by preparing a P&l suspense a/c. This P&l suspense a/c will have a figure of profit earned on an estimate basis from start of year to the D- day of a partner.

If u dnt want to settle decesed partner claim, u can give an option of Sec37 of partnership act to the legal hier of deceased partner....