A/c treatment-proprietor's cap a/c-converted to pvt ltd co.
This query is : Resolved
07 August 2013
Hi.
a sole proprietor concern is converted into a private limited co. with an authorised capital of Rs.5 lakh. And the proprietor's capital balance on the date of conversion was Rs. 2.5 crore.
There were also personal assets of proprietor reflecting in the balance sheet which were not transferred to the newly formed company.
I am confused as to what effect is to be given to proprietor's capital balance.
Kindly guide.
a sole proprietor concern is converted into a private limited co. with an authorised capital of Rs.5 lakh. And the proprietor's capital balance on the date of conversion was Rs. 2.5 crore.
There were also personal assets of proprietor reflecting in the balance sheet which were not transferred to the newly formed company.
I am confused as to what effect is to be given to proprietor's capital balance.
Kindly guide.
07 August 2013
Close prop books of a/c and trf all asseys and liab to compnay's books.
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