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Retired Partner

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Amit Jain

Proprietor

408 Points Posted on 22 July 2020

A was a partner of ABC and his profit sharing ratio was 25%. He retires on 15th June' 2018.
Capital Balance of A as on 15th June was ₹ 2,40,000/- which was transferred to A's Loan A/c

A's Loan balance as on 31st March'2019 was ₹ 50,000/-

Now my question is what to show in ITR 3 in the following in Partnership Details
1. Profit Sharing Ratio
2. Capital Balance

Replies (2)

Quick Summary

This discussion addresses how to report a retired partner's details in an ITR 3 form. Specifically, it clarifies how to handle the profit sharing ratio and capital balance for a partner who retired mid-year. The consensus is that the profit sharing ratio should reflect the period they were active, while the capital balance should be NIL as of the balance sheet date if they are no longer a partner.

CA Raj Doshi

Practising CA

5649 Points Posted on 23 July 2020

Profit sharing ratio shall be as per deed ...
capital balance is as on the balance sheet date ... since he was not a partner on 31.03.2019 - the capital balance shall be NIL.

Ravi SADhiyan

Practice

3087 Points Posted on 23 July 2020

Originally posted by : Amit Jain
	A was a partner of ABC and his profit sharing ratio was 25%. He retires on 15th June' 2018.Capital Balance of A as on 15th June was ₹ 2,40,000/- which was transferred to A's Loan A/cA's Loan balance as on 31st March'2019 was ₹ 50,000/-Now my question is what to show in ITR 3 in the following in Partnership Details1. Profit Sharing Ratio2. Capital Balance