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Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 Query is regarding accounting & taxation of a partnership firm, the details of which are as under:

1. Prop. firm was started by Mr. X from
Oct 2010.

2. On 10-1-2011, Mr. Y joined the firm
with 50% Sharing as partner and the
status of the firm changed from Prop.
to Partnership Firm.

So the query is now:
1. How the accounting will be done?
2. How the taxation will be done?

Does need to prepare separate accounts for the period Oct 2010 to 10-1-2011 & 11-1-2011 to 31-3-2011???

Please provide detailed information regarding the matter.

Thanks

VISHRUT

VISHRUT (Expert)

20 September 2011 Accouting will be done for two accounting period.

one will be till 10.01.11 and another will be after 10.01.11 as both will be seperate entity.

For tax purpose before 10.01.11 it will be clubbed with individual taxability and for after 10.01.11 it will be taxability of firm.

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