Conversion of pertnership firm to sole proprietorship.
This query is : Resolved
Prathamesh
(Querist)
20 December 2012
Respected sirs,
A partnership firm consisting of two partners wishes to be dissolved and one partner wishes to continue the business as sole proprietorship. Dissolution of the firm and then commencing the business is it the only option available with the partner or can he continue the business?
thankyou
A partnership firm consisting of two partners wishes to be dissolved and one partner wishes to continue the business as sole proprietorship. Dissolution of the firm and then commencing the business is it the only option available with the partner or can he continue the business?
thankyou
Dintakurthi Tirumala
(Expert)
20 December 2012
Yes, the only option is dissolve the partnership firm and then form sole proprietorship. However at the time of closing of books of partnership firm all the assets and liabilities and stocks of firm can be transferred to the partner who want to take over the business as sales to him for settlement payable to him and any due from his can receive or pay to other partner by him in cash or by cheque or any other form.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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
- EPF ECR NEW FILE SEP 17TH 2026
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- Non filing of I T Returns
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- TAX AUDIT ON PROFESSIONAL INCOME
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- Capital Gail Exemption Certificate
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
