Dissolution of partnership firm
This query is : Open
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?
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?
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.
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?
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