Retirement of Partner How to Prepare Profit and Loss Account
This query is : Resolved
21 January 2022
Dear Sir,
There is a retirement of partner on 18/08/2020. How to deal with it. Do we have to prepare Profit or Loss Account and Balance Sheet or Can We prepare it on March 2021. As the firm is running in loss since 2017-18 till 2019-20 and the loss is Approx Rs 55 Lacs and in the Currrent year the Profit is Rs 29.50 Lacs for the F/y 2020-21. How To Charge Depreciation will we have to charge on proportionate basis while preparing 18/08/2020 Profit and loss Account or it will be charged only on March 2021 closing.
There is a retirement of partner on 18/08/2020. How to deal with it. Do we have to prepare Profit or Loss Account and Balance Sheet or Can We prepare it on March 2021. As the firm is running in loss since 2017-18 till 2019-20 and the loss is Approx Rs 55 Lacs and in the Currrent year the Profit is Rs 29.50 Lacs for the F/y 2020-21. How To Charge Depreciation will we have to charge on proportionate basis while preparing 18/08/2020 Profit and loss Account or it will be charged only on March 2021 closing.
22 January 2022
Financial statements has to be prepared in accordance with the clauses of the partnership deed , meaning thereby
* if accounts are to be closed on the date of retirement, per the partnership deed, two sets of financials has to be prepared wherein depreciation has to be provided proportionately.
* if no mention in the deed, per general presumption, one set of financial statements need to be prepared for the year 2020-21 wherein profit of the retired partner may be determined on time basis.
* if accounts are to be closed on the date of retirement, per the partnership deed, two sets of financials has to be prepared wherein depreciation has to be provided proportionately.
* if no mention in the deed, per general presumption, one set of financial statements need to be prepared for the year 2020-21 wherein profit of the retired partner may be determined on time basis.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Traces submitting correction statement error
- ITR-Capital Gain
- ITR-3 File/Error Found
- Rent claimed on building given on permissive possession basis
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
