Reconstituion of partership firm due to the partner's death
Ilyas
(Querist) 04 October 2012
This query is : Resolved
Need a best suggestion for the re-constitution of a partnership firm which is dissolved due to the partner's death. what is the procedure to settle the account to the deceased partner's representative.
prabhakar singh
(Expert) 06 October 2012
Make an accounting of the firm on death date to find out what is payable to or receivable
from the deceased partner according to share of deceased mentioned in the agreement and then get the account book so balanced signed
by the legal representatives of the deceased and then receive or pay by an account payee cheque.
K.K.Ganguly
(Expert) 06 October 2012
What was the share of the deceased partner as per the Partnership Agreement?
Arrive at the diference between the actual figure of assets & liabilities on the date of death of the deceased partner & pay his successors the said share of the difference.
H.M.Patnaik
(Expert) 07 October 2012
Dear Friend,
The modality for meeting the excigency in such an event normally finds place in the Partnership Deed itself. In case the Deed is silent in this regard , the relevant provision of Indian Partnership Act as amended up to date shall prevail.
However,for arriving at the exact quantum of money payable to the deceased partner's legal representative(s), can only be arrived by drawing up final statement of accounts of the firm as on the date of the deceased partnerduly certified by any competent Auditor.
