banner_ad

Distribution of property in a partnership firm

others 954 views 1 replies

A Partnership firm is engaged in Construction of a residential and commercial units.The 2 partners of the firm wants distribution of unsold flats and commercial shops between themselves.

 
So should the partners transfer the properties in their individual names or keep it in Firm's name and take money as and when it is sold. 
 
What will be the effect in firm's books and individual partner's books of account? 
 
What will be the Tax Liability? 
 
Replies (1)
Both partners capital account will be debited with the agreed amount for which sale deed is executed between firm and partners and such sale deed should get registered with registrar of immoveable properties in the name of partners. Where as propeties are debited in their books.Cash can not be distributed among partners. This is not a sale transaction. It is distribution of assets among partners.it is a pgbp income in the hands of firm bcs flats are held as stock in trade.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 02 May 2026
Senior execiutive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details