Treatment of Proprietors Capital

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When a proprietorship business transitions to a partnership with some of the legal heirs, the proprietor's capital balance typically remains unchanged. This is unless the original proprietorship is formally dissolved or a new partnership deed is established among the new partners. It's advisable to consult the Indian Partnership Act, 1932 for detailed guidance on this process.

Ajit Kumar Singh

Ajit Kumar Singh (Querist)
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13 March 2020 What is the treatment of Capital Balance appearing in Proprietorship Firms Balance Sheet if 3 legal heirs out of 4 decides to run proprietorship business as partnership firm.

Aashok Kumar Sharma online

Aashok Kumar Sharma

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05 May 2020 It will remain the same unless proprietorship is dissolved or new partnership deed is prepared among partners. You may follow the The Indian Partnership Act, 1932

https://www.mca.gov.in/Ministry/actsbills/pdf/Partnership_Act_1932.pdf

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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30 May 2020 It will remain the same unless proprietorship is dissolved or new partnership deed is prepared among partners. You may follow the The Indian Partnership Act, 1932 https://www.mca.gov.in/Ministry/actsbills/pdf/Partnership_Act_1932.pdf

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