Easy Office
LCI Learning

Loss sharing in a Partnership firm

This query is : Resolved 

05 June 2023 Dear Sir,

If a partnership firm has incurred losses can the loss burden has to be borne by the partner even by selling his personal assets like his property incase he is not in a position to bear the losses.

Please help me regarding this matter.

Divyesh Jain

05 June 2023 Liability of any payments to creditors or lenders lie on all the partners as per shares in partnership (other than LLP), but loss is shared or adjusted against any future income.

05 June 2023 Do the losses has to be borne by the partner even by selling his share in his personal asset like property.

05 June 2023 Payment liability lies over partner/s, how it is paid depends upon the defaulters.
Courts in such cases, have ordered to acquire the property/ies of defaulters to repay the appellants.

05 June 2023 Ok Sir, Thanks for your valuable response.

05 June 2023 Most welcome.

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

CAclubindia's WhatsApp Groups Link

Similar Resolved Queries


Unanswered Queries