can anybody throw some light regarding section 78
for eg: there were 4 partners A/B/C/D equal ratio incurred loss of RS (2000) RS 500 each
next year incurred profit of RS 1000
but new partner is replaced on 1st May in place of partner D called E
plz revert back
in the profit of 1000 share of D's profit is RS 250 and his share of loss is RS 500 therefore 250 can be setoff and remaining loss of D's will lapse...firm can carry forward next year loss of 750(2000-500-750).now income of firm will be nil and 250 of D's share of loss will be lapse.
as per provision of section 78
CAclubindia
