Partnership queries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2015 We are four friends who had started a small coaching this year in May. We have still not registered it so its technically not A LEGAL ENTITY.
All the four invested equal amounts for setup which included deposit amounts and rents, assets such as chairs and other expenses made to start the coaching.
Yet, after a few months of operations, two of the partners have to leave, due to their personal reasons. So we decided to distribute all earnings made till then equally (inc amount earned as well as deposits that we got back as well as any amount from sale of assets). In the end, there was a loss of 2500 each.
Now, Two of us have started tutions at my home. I would like to know if we are liable to pay the other two the amount that they lost in the process?
Although its not a legal entity, i would like to know how it would work if it was one.
Please do throw some light on how incomes and losses are divided.

CA Harish Suwalka

CA Harish Suwalka (Expert)
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06 November 2015 First of all, it doesn't matter if your partnership is registered or not.

If a firm of you 4 partners have incurred loss of 10000 than it will be divided between them equally i.e. 2500

You two need not to pay the amount they both lost, because it was not your loss, ut was of tje firm of which they were also partner

This is not that complicated.. its just practical