Dissolution of firm
This query is : Resolved
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?
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)
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.
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.
01 August 2017
So what does the mean of completing dissolution process?
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?
02 August 2017
No, thanks.
Thnx a ton for resolving my query.
Thnx a ton for resolving my query.
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
- Tax on Deemed Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- Rental income of jointly held property
- Average Cost Of High Quality Diamonds
- Difff in ais receipts and gst turnover
- Banking Related Issue
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
