Dissolution of firm

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pankaj kumar (Querist)
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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?

Amol S Joglekar

Amol S Joglekar (Expert)
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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)

pankaj kumar

pankaj kumar (Querist)
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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.

Amol S Joglekar

Amol S Joglekar (Expert)
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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

pankaj kumar (Querist)
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01 August 2017 So what does the mean of completing dissolution process?

Amol S Joglekar

Amol S Joglekar (Expert)
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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?

pankaj kumar

pankaj kumar (Querist)
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02 August 2017 No, thanks.
Thnx a ton for resolving my query.

Amol S Joglekar

Amol S Joglekar (Expert)
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02 August 2017 you are most welcome............

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