Partnership Deed / Accounts

Dear sir,

Here is the question of superceding effect of the partnership deed or the accounts.

Lets review the case step by step

The conversion of Proprietory concern to partnership firm,

transfer of Property into properietorship concern

Reduction of capital,

what ever be the value recorded into the books at the time of introduction of capital stands valid for the desollution.

Originally posted by : Bhavik Davda
	Dear sir, Here is the question of superceding effect of the partnership deed or the accounts. Lets review the case step by step The conversion of Proprietory concern to partnership firm, transfer of Property into properietorship concern Reduction of capital, what ever be the value recorded into the books at the time of introduction of capital stands valid for the desollution.

 Dear Mr.Bhavik Davda

Noted your reply

Kindly explain the last para.. 

What is the value recorded.????    in this case, the factor X has not changed since the day of Partnership ...instead just a day before the signing of the partnership deed, the capital of the proprietary concern was increased from Y to X. 

Why declare X/3 in the Partnership Deed then,!!  as it was the first legal document signed with terms and conditions by the incoming partner ?? 

Why reduce the capital and increase the share in profit / loss... ???

Dear Chandranji,

I have studied the case in depth it seems that here all the caluses has been followed while converting the proprietorship to partnership except the capial clause. Now in very general the parnership deed is the bible for the partnership firm legal consitution, the accounts should not superced the same or else we can say that it can not be used as per our requirement. But here the question is practicality. The amt. which is shown int the balancesheet have to be taken into account since, the value mentioned or the ratio mentioned in the deed do not stands practical in the case. If following the same the earlier properietor who has put in his 11 years will loose the assset by 66.67%- hence amt. of capital taken in to account to previous balance sheet should be the consideration for doing the dissolution matter.

I hope i am able to simplify the question... let us have views of other participants too.

With Regards,

Bhavik Davda

www.vaibham.com