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Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.?
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Why should the old partners bear the balance of deferred revenue expen...
Reasons why old partners bear the balance of deferred revenue expenditure at the joining of new partner:
1. Contribution to the firm's growth:
- The old partners have already contributed to the growth of the firm by incurring the deferred revenue expenditure.
- This expenditure has helped in increasing the revenue of the firm over time.
2. Benefit received by the new partner:
- The new partner will enjoy the benefits of the increased revenue resulting from the deferred revenue expenditure.
- As a result, it is fair for the old partners to bear the balance of the expenditure.
3. Upholding partnership agreement:
- Most partnership agreements stipulate that the old partners are responsible for any outstanding expenses or liabilities at the time of the new partner's admission.
- This ensures that the new partner does not have to bear the burden of expenses incurred before their entry into the partnership.
4. Maintaining fairness and equity:
- By having the old partners bear the balance of deferred revenue expenditure, fairness and equity are maintained within the partnership.
- This prevents any potential conflicts or disputes regarding the allocation of expenses among partners.
In conclusion, it is common practice for old partners to bear the balance of deferred revenue expenditure at the joining of a new partner in a partnership firm. This ensures that the new partner benefits from the expenditure without having to bear the full cost, while also upholding the partnership agreement and maintaining fairness and equity within the partnership.
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Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.?
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Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.?.
Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why should the old partners bear the balance of deferred revenue expenditure at the joining of new partner in partnership firm while such new partner will get the benefit of such revenue expenditure as the revenue has been increased due to such revenue expenditure.?.
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