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Retirement of all partner except one

Vivek Jain (CS) (205 Points)

13 January 2014

If there are 4 partner. Out of 4 partner, 3 partner decided to retire but 1 partner decided to carry on the business. What is the provision for such case. If the firm is dissolve??

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6 Replies

CA Devanand Jethanandani (CA) (8003 Points)
Replied 13 January 2014

Yes Pertnership Frim will be Dissolved.

Vivek Jain (CS) (205 Points)
Replied 13 January 2014

so we have to make DISOLUTION DEED. and what about one partner who want to continue with business as proprietorship. What we have to do for that.

CA Devanand Jethanandani (CA) (8003 Points)
Replied 13 January 2014

Yes you will have to make dissolution deed.

Business of partnership will be acquired by the partner who wants to continue business. The amount payable by the partner who wants to continue to the rest of three partners will be as under,

Square up all assets and liabilities accounts and transfer the balances to all partners’ capital accounts in respective ratio.

Example, There are Four partners A, B, C, D. A wants to continue, if after squaring up all assets and liabilities accounts there is Credit balance to the partners' capital accounts as under,

A–Rs. 100

B- Rs.200

C- Rs.500

D-Rs.200

Then A will pay B, C, D, Rs.200, Rs.500 and Rs.200 respectively.

Regards,

CA. Devanand Jethanandani

Vivek Jain (CS) (205 Points)
Replied 13 January 2014

means that single partner can continue the business as proprietor.

If We have to make any deed for that single partner??? or after retiring of 3 partner, single partner will automatically be consider as proprietorship concern after making dissolution deed.

And thanks for your response.