AA-59 How To Record Entries From Sole Proprietorship To Partnership Account

My Videos (Accounts Officer ) (673 Points)

20 June 2024  
All Respected Members,

Hope all of you will be fine with good health and doing well.

Please educate me following:

Suppose, if a person using busy accounting software.

He has 2 separate businesses. One is sole proprietorship an another is partnership.Both businesses have separate bank account.

Actually sole proprietorship is converted in partnership.

Matter is that he issued invoices from sole proprietorship and record sale in sole proprietorship but he deposited the payment cheque which he received against these invoices in partnership bank account.

Moreover, client deposited withhold income tax on his sole proprietorship TIN.

please educate how should he record this receipt entries in his partnership account whereas sale is not recorded in this business ?

on other hand, how should he manage sole proprietorship business accounts because if he doesn't record receipt in it, Debtors account will not nill ?

and

What should he do for withhold tax matter as stated above ?

Thanks in advance for your precious time and efforts to reply this very important query.