Conversion of pertnership firm to sole proprietorship.

This query is : Resolved

Prathamesh (Querist)
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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

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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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