Balance sheet of a partnership firm
Abhinav
(Querist) 31 October 2013
This query is : Resolved
Dear Experts,
A partnership firm is different from a limited company.I have very specific questions, please advise
- Who all has the right to ask for Balance Sheet copy?
- Our setup has 4 Working Partners and 2 Non Working Partners. Can a sleeping partner who has given power of attorney can get a copy of Balance Sheet ?
- How many previous years balance sheet can be shared? One of our partner has asked to give him Balance Sheet for last 30 years ?
ajay sethi
(Expert) 31 October 2013
a partner is entitled to inspection of documents .furnish documents available with you
Abhinav
(Querist) 31 October 2013
Fine. But how can the partner ensure that balance sheet is not shared with any unrelated person. he may take the Balance sheet and share it with some X, Y Z?
ajay sethi
(Expert) 31 October 2013
you cant refuse to furnish balance sheet copy merely on apprehension that he may misuse it
Rajendra K Goyal
(Expert) 31 October 2013
Balance sheet need to be provided to the partner for the no. of years it is available.
Abhinav
(Querist) 31 October 2013
OKay.
Legally upto how many years ?
Advocate Bhartesh goyal
(Expert) 01 November 2013
Every partner of firm either he is working or sleeping has right to inspect the account books of firm and also entitled to get balace sheets of firm from the formation of firm.
prabhakar singh
(Expert) 01 November 2013
Section 9 of the Indian partnership Act is the answer to your query and it reads:
"Section 9
GENERAL DUTIES OF PARTNERS.
Partners are bound to carry on the business of the firm to greatest common
advantage, to be just and faithful to each other, and to render true accounts and full
information of all things affecting the firm to any partner, his heir or legal
representative. "
So you can not deny true accounts and balance sheet on apprehension that he may
share it with others as there is obligation on him to remain faithful to the firm and breach there of would be actionable by and on behalf of the firm.
As regards to the period if the accounts are not weeded out he should be given accounts for the period he demands if no accounting was done with him for period
he demands.
There is no law laid down in partnership Act as to for what time accounts would be preserved so guidance in this regard may be
taken from IT Act where a business has to preserve a/cs for a period of 8 years.
V R SHROFF
(Expert) 01 November 2013
Who all has the right to ask for Balance Sheet copy?
ANS : ALL Partners
- Our setup has 4 Working Partners and 2 Non Working Partners. Can a sleeping partner who has given power of attorney can get a copy of Balance Sheet ?
ANS : yes
- How many previous years balance sheet can be shared? One of our partner has asked to give him Balance Sheet for last 30 years ?
ANS : ALL that is available with you.
Partner is Agent for u, and cannot be deprived of what u hv. 2 years or 200 years..
Thyagarajan
(Expert) 01 November 2013
Balance sheet is not a secret document.Even if a third person comes to know he has no powers to scrutinize it and give his opinion to be followed.
M V Gupta
(Expert) 02 November 2013
Well advised by the experts. Nothing more to add.
R.V.RAO
(Expert) 22 February 2014
As you file an audited/UNAUDITED B/S with ROF,IT IS A PUBLIC DOCUMENT.
YOU CANNOT PREVENT PULIC SCRUTINY. SO HOW can you avoid request of one partner active/sleeping? give for any no.of years it is available.
Anirudh
(Expert) 22 February 2014
Dear Mr. Rao,
Why the three months old queries, which already stand answered are being attended to by you now, especially when you do not say anything different than the reply already provided?
