Conversation to LLP
This query is : Resolved
19 December 2022
In Conversation to LLP chapter, in the books of Purchasing Company
(I) When the amount is payable to old firm by purchasing company
🔸Business Purchases A/c is debited and Old Firm A/c is credited
(II) When assets and liabilities taken over from old firm
🔸Sundry Assets A/c is debited and Sundry Liabilities a/c, Provision for bad debts a/c and Business purchase a/c, all are credited
Now my question is why Business Purchase account was first debited and then credited 😅 I am really confused
(I) When the amount is payable to old firm by purchasing company
🔸Business Purchases A/c is debited and Old Firm A/c is credited
(II) When assets and liabilities taken over from old firm
🔸Sundry Assets A/c is debited and Sundry Liabilities a/c, Provision for bad debts a/c and Business purchase a/c, all are credited
Now my question is why Business Purchase account was first debited and then credited 😅 I am really confused
20 December 2022
When the amount is payable to old firm by purchasing company 🔸Business Purchases A/c is debited.
When assets and liabilities are taken over the net amount is credited to business purchase account towards net liability taken over.
When assets and liabilities are taken over the net amount is credited to business purchase account towards net liability taken over.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Copyright software
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- Multiple trade mark
- Transporter Declaration form
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
