DISSOLUTION OF PARTNERSHIP DEED OF A FIRM

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This query is : Resolved

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A partnership firm with three partners (mother, brother, and the user's friend) needs to dissolve but lacks sufficient cash or bank balances to repay partner capital and current account balances. The total amount required is substantial, and business sales are not enough to cover these repayments. The partners are in agreement and do not anticipate disputes. The user is seeking guidance on how to resolve this financial predicament during dissolution.

raghavendra b

raghavendra b (Querist)
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29 September 2022 DEAR SIR,

ONE OF MY FRIEND RUN A PARTNERSHIP FIRM FROM PAST 10 YEARS. PARTNERS OF THE FIRM ARE HIS MOTHER AND HIS BROHTER AND HIM. NOW HE WANTS DISSOLUTE HIS FIRM. BUT THE PROBLEM IS THERE IS NO CASH BALANCE AND BANK BALANCE ENOUGH TO REPAY THE PARTNERS CURRENT ACCOUNT AND CAPITAL ACCOUNT BALANCE. NEARLY HE NEEDS MORE THAN MEANS EACH PARTNER SHARE 6,75000/- EACH TOTAL 2025000/-. AND CURRENT ACCOUNT BALANCE NEARLY 1300000/- SO HIS BUSINESS SALES NOT ENOUGH TO MEET THE REPAYMENT OF PARTNERS SHARE. NOW HOW TO RESOLVE THIS PROBLEM. ALL PARTNERS ARE MEMBERS OF FIRM AND WILL NOT CREATE OR RISE ANY DISPUTE IN THE MATTER OF HIS SHARE OF INVESTMENTS IN THE FIRM.

PLEASE I NEED YOUR VALUABLE GUIDENCE TO RESOLVE THE PROBLEM

THANKING YOUR SUGGESTIONS

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 October 2022 Convert the balance to loan account.

raghavendra b

raghavendra b (Querist)
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02 October 2022 thank you sir,

after convert into loan account partnership deed should become amended or dissolved. then how many years can maintain loan account.

regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 October 2022 Better to clear it off in about 3 to 4 years.

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