Partnership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2014 How to make computation for the return of A.Y.2014-15 if profit sharing ratio is changed during the year due to death of one of partner.please suggest me.

Sandeep Dharar

Sandeep Dharar (Expert)
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05 July 2014 In that case all the partners details will b filled up in return. And in Individual return the profit will come upto the date of death. Means the deceased partner return will b filed by taking profit, Salary, int. on capital, loan ect(as applicable) from the beginning of the year to the date of death. And if any partner admitted then the profit and all other income will come from date of admission to the end accounting date.

Remaining partners details will b as usual.

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2014 But how to make computation of partnershipfirm

Sandeep Dharar

Sandeep Dharar (Expert)
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05 July 2014 Its simple. It will not effect the death. Look the profit earned by the firm is distributed so it will effect Partner's file. The change which will appear in the firms return will B that all the partners details will come (whether admitted or deceased) in General Sheet 2 of ITR-4.

And if u have any other problem then elaborate that point.

Rupesh Jain

Rupesh Jain (Expert)
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05 July 2014 you have to make two Profit and loss a/c for ration change. one for old ratio and second for new ratio. and then given remuneration and profit to partners.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2014 Can you give me example of it?please because two profit and loss account for two business.I have query that remuneration and interest is decide only after the year end.