A friend of mine entered into partnership for opening an educational coaching centre with another person in June 2013. There were differences i.e. the second partner did not bring in any business during the peak season (admission time). The number of students enrolled were only because of efforts of first partner. In view of non-performance, the second partner is exiting and the first partner remains. A new partner is entering. I want following clarifications/guidance please:
1. What is to be paid to the outgoing partner? (his capital contribution is Rs 30000). Is the total amount of the money he put in to buy the chairs/table etc. to be returned to him in full or in some percentage? Is the outgoing partner entitled to the income which he did not make any effort to earn?
2. When a new partner is admitted, is it the new partner's liability to pay off the outgoing partner? What is the contribution to be made by the new partner?
