Funds treatment in partnership (Income Tax)

This query is : Open

Author : Anonymous

( Author )
30 June 2012

respected sir please guied me on this subject

in a partnership there are two partners having capital of Rs. 10 lacs and now they want to add one new partener with 10% of sharing capital (i.e 10% of 10 lacs capital=1 Lac)

but old partners want that new partner have to bring 50 lacs(1 Lac as capital and 49 lacs as fund)

here my query is how to show 49 Lacs in the balance sheet?? what is the treatment of 49 Lacs?

CA PARAS BAFNA

( Expert )
30 June 2012

The partners' profit sharing ratio (PSR) and Capital Contribution are 2 different aspects.
.
So, once the PSR is decided, the amount being brought by the new partner can very well be treated as capital only.
.

Author : Anonymous

( Author )
02 July 2012

yes sir but old parters have decidd to enter new partner by 10% PSR

but they want new partner would have to bring 50 Lacs so on paper it will be only one lac(10% PSR)

so now question is how to show 49 Lacs on paper/on balance sheet

can we show it as goodwill or anything eles???