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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Type of Capital Gain
- Error in uploading Form 10BD
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Difff in ais receipts and gst turnover
- Grand in aid
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
