Situation 1 - A family run business that 5 firms in total. There are 5 partners in all these firms. The partners mutally decides to retire the youngest partner from the all the firms. The existing partners agree to give the retireing partner one firm of their choice. In such case what is the treatment of doubtful and bad debts, are there any rules surrounding the same? Also should the goodwill be calculated for all the five firms?
Situation 1 - A family run business that 5 firms in total. There are 5 partners in all these firms. 4 partners mutally decides to retire the youngest partner from the all the firms. The existing partners disagrees to give the retireing partner any of the 5 firms. In such case what is the treatment of doubtful and bad debts, are there any rules surrounding the same? Also should the goodwill be calculated for all the firms?
