All Respected members,
Please educate me if a sole proprietorship convert into a partnership firm and a coming partner is not investing anything but share of profit of both partners will be 50% each; how accounting treatment will be done at start ?
Further, supose that if some amount in sole proprietorship bank account and we transfer it to partnership bank account what will be accounting treatment for this as well ?
Thanks in advance for your precious time and efforts to reply of this query.
Dear Mr.Raja PM.
Your kind response awaited on above.
| Originally posted by : My Videos | ||
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Dear Mr.Raja PM. Your kind response awaited on above. |
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the partnership bank account is new one. right...?
| Originally posted by : My Videos | ||
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Yes Sir. it's new one. | |
Okay,
Provide the Following entries :
In Proprietor Account :
Dr. XYZ company Capital A/c - XXXXX
To, Bank A/c - XXXXX
In Partnership Account :
Cr. Mr. A Capital A/c - XXXXX
Dr. Bank A/c - XXXXX
give proper narration in both end.
CAclubindia
