2 firm 1 proprietor

The word 'firm' means a partnership firm.

But you have mentioned that it is a proprietor's business. An individual can have any number of business eshtablishments, whether in city or village. Since it is not a company, there is no restriction on name. He can use the same name or different name.

For accounting purpose, it will be treated as branch of the same business (if the nature of  both businesses is same). Even if the nature of businesses and names if different, for income tax purpose, all business will be taxed under the same PAN