section 78

"Where a change has occurred in the constitution of a firm, nothing in this Chapter shall entitle the firm to have carried forward and set off so much of the loss proportionate to the share of a retired or deceased partner as exceeds his share of profits, if any, in the firm in respect of the previous year."

 

 

 

What does the line 'as exceeds his share of profits, if any, in the firm in respect of the previous year' means? please explain,thanks in advance

Replies (1)

dear arka suppose  the partner share of loss is rs.30000 and his share of profit is rs.20000 then the firm can not carry fwd the loss of rs.10000.profit is calculated upto the date of retirement and loss is calculated at end of the year.

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