Untitled 2 - In the Lone Pine Cafe Case also disregarding...

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3) Proportional Share in Equity determined considering Partnership Dissolved on 30 th March’2006 -: Dissolution of partnership between all the partners of a firm is called the dissolution of the firm. Partnership is the relation between persons who have agreed to share profits and Loss of business carried on by all or any of them acting for all. Thus, if some partner is changed/ added/ goes out, the ‘relation’ between them changes and hence ‘partnership’ is dissolved, but the ‘firm’ continues. Hence, the change is termed as ‘reconstitution of firm’. However, complete breakage between relations of all partners is termed as ‘dissolution of firm’. After such dissolution, the firm no more exists The settlement of accounts after dissolution - of a firm is dissolved as provided in the Act.
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Unformatted text preview: In the Lone Pine Cafe Case also, disregarding the marital complications of Mr. and Mrs. Antoine considering the Partnership as dissolved we would be able to conclude that , As per the balance sheet as on 30 March’2006 , the financial balance sheet had Net Loss of $10,854 which has to be deducted from the Total owner’s Equity of $48000 (16000 contributed by each of all the Partners during the start of the Business ) .The balance equity left with the Cafe was of $37,146 , which has to be proportionately divided among all the partners i.e. $12,382 per partner. Thus, as the business was in Loss for the said financial period, all the partners also had to bear Loss in the returns for the capital invested in the Lone Pine Cafe....
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