Dissolution of partnership firm

Save Share

This query is : Open

CS Girija (Querist)
Follow

22 October 2009 Dear Sir/Madam
There are only two partners and partnership is at will. Both decide in month of Sept,09 to dissolve the firm and accordingly firm is dissolved in the month of OCt.2009. One of the partner retains the asset and the business, while the outgoing partner receives consideration amount. However the balance sheet is drawn only till 31/03/2009. Thus the query is that can the outgoing partner pay its capital gain tax on the basis of particulars stated in balance sheet for the year 31/03/2009?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

22 October 2009 You have to prepare a trading account and balance sheet for two periods seperately ie upto date of dissolution in october and another one from the date in october to march. You have to pay capital gains tax based on october balance sheet.

CS Girija

CS Girija (Querist)
Follow

23 October 2009 Thanks for the reply Sir. But what in case the outgoing partner does not have balance sheet for the month of October 2009 and the other partner is not ready to co-operate for the same. As he says now the firm is dissolved and he does not wish to draw balance sheet till the month of Oct.2009.How will be the outgoing partner query be solved?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now