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

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..
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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.

Single balance sheet
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.
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Originally posted by : Tapas Samadder
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