I had entered in a partnership with one individual in the ratio of 50-50 in profits and losses with the understanding that I shall be the investment partner (nothing as such mentioned in the deed) so whatever expenditure went towards establishing the firm and running it till date was provided by myself and the earnings of the firm.
The property that was being used as the premises of the firm is a leasehold property from a government industrial body which has executed a 99 year lease deed with myself as an individual and not the my partnership firm. I introduced this property into the firm as a capital introduction by myself.
Now, The firm has existed for 1 and half accounting years. We have incurred losses in both years and my partner has withdrawn certain amounts as drawings as well. I dont want to continue this business since my partner refuses now to be a partner in losses and further demands that he draw more for himself, this is unacceptable to me and thus we have decided to close the firm pending further discussions.
As things stand currently his ledger in the books of the firm stands at a substantial debit by adding up his drawings and his share of losses as agreed in the Deed and my ledger in the books stands with a substantial credit even after minusing the little drawings that I have taken and my share of losses.
The deed states that any of the partners may take management and control and take decisions. My question now is - 1. Can I withdraw the said leasehold property from the firm as a drawing just as I had introduced it as a capital? 2. At what valuation, at the depriciated value or other rate?
Please let me have your comments and advice on the same.