Dissolution of firm
This query is : Resolved
pankaj kumar
(Querist)
01 August 2017
Hi, guys.
I m little bit confused on the dissolution.
What does the mean of following:
1. If a partner agree to complete the dissolution proceedings and he is getting Rs. 10000.
2.If a partner is getting a remuneration of Rs. 14,000 for dissolution of the firm.
3.If a partner look after the dissolution work, for which he is getting Rs. 10000.
In all cases entry will b:
Realization A/c Dr.
To partner's capital A/C
👉Bt the problem in all above cases is that he will bear realization expense or not?
I m little bit confused on the dissolution.
What does the mean of following:
1. If a partner agree to complete the dissolution proceedings and he is getting Rs. 10000.
2.If a partner is getting a remuneration of Rs. 14,000 for dissolution of the firm.
3.If a partner look after the dissolution work, for which he is getting Rs. 10000.
In all cases entry will b:
Realization A/c Dr.
To partner's capital A/C
👉Bt the problem in all above cases is that he will bear realization expense or not?
Amol S Joglekar
(Expert)
01 August 2017
what type of realisation expenses you have in mind? Can you specify?
(Normally speaking, the partner taking remuneration is for doing the administrative job. The other expenses, if any, should be borne by firm)
(Normally speaking, the partner taking remuneration is for doing the administrative job. The other expenses, if any, should be borne by firm)
pankaj kumar
(Querist)
01 August 2017
My query is relatiin to dissolution of the partnership firm.
A firm dissoloved and Saroj, a partner agree to complete the dissolution proceedings of the firm, for which she be paid Rs. 15000. Realisation expenses Rs. 6,000 paid by Saroj.
A firm dissoloved and Saroj, a partner agree to complete the dissolution proceedings of the firm, for which she be paid Rs. 15000. Realisation expenses Rs. 6,000 paid by Saroj.
Amol S Joglekar
(Expert)
01 August 2017
Prima facie this appears to be the administration charges for the service given by Saroj. The expenses of realisation should be borne by the firm. unless otherwise specifically agreed between Saroj and Firm.
pankaj kumar
(Querist)
01 August 2017
So what does the mean of completing dissolution process?
Amol S Joglekar
(Expert)
02 August 2017
Administrative work.....say for example, one needs to draft and prepare the dissolution deed. The fees for such a deed may range from 5000/- to 50,000/- This expenditure is to be borne by the firm and not by Saroj.
The deed needs to be duly stamped and notorised. The cost of stamp and notary charges are to be borne by the firm. The same needs to be filed with Registrar of Firms. The filing fee is to be borne by the firm. Tell me what else you need?
The deed needs to be duly stamped and notorised. The cost of stamp and notary charges are to be borne by the firm. The same needs to be filed with Registrar of Firms. The filing fee is to be borne by the firm. Tell me what else you need?
pankaj kumar
(Querist)
02 August 2017
No, thanks.
Thnx a ton for resolving my query.
Thnx a ton for resolving my query.
Amol S Joglekar
(Expert)
02 August 2017
you are most welcome............
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- GSTR-9C filing
- Working on Gold wastage during Melting of old gold jewellery
- Import Order Cancelled.
- TDS on Dashcam rent and allied services
- Advances to related party
- Form 144 TDS Return Validation Error – Mandatory Fields
- Section 269ST applicability for capital introduced by partner to his partnership firm
- Capital Gains Tax on Inherited Mutual Fund
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
