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Partnership firm & a new partner added and a old partner removed

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Tapas Samadder

538 Points Posted on 02 March 2024

Dear Sir, in a partnership firm one old partner removed and one new partner added, in this case, balance sheet will be one or two, pls..

Replies (5)

Quick Summary

When a partnership firm adds a new partner and removes an old one, a single balance sheet is generally required as per the Income Tax Act. However, you can prepare a separate balance sheet on the date of the old partner's removal to accurately reflect the firm's financial position at that specific time for settlement purposes.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 02 March 2024

Single balance sheet

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 03 March 2024

As per income tax act one balance sheet is required.

In case the settlement purpose You can prepare a balance sheet on removed date for financial position as on date.