Accounting

accounting policy should be assets should be more than liablities in ratio ( 2:1)

if they come fall under tax audit it mandatory every debtors and creditors should  be balance confirmation from the suppliers and clients we cannot write off the their payable and receivables on the books of accounts. it is mandatory that every supplier and customers want to furniish their pan  no and balance confirmation  to the income tax dept then it should be carried out for the subsequent year  otherwise it will problem on future

u cannot intoduce stock as capital or we can otherthings put u family members as supplier and get goods from them as credit and pay them after realisation of your stocks sold  and amt reciveed from debtors.
 

The receipts from debtors of the firm should be used to pay the proprietary dues. Flow of activity : Purchase - Proprietary - Sale to firm. Purchase from Proprietary - Firm - Sale to customer .... Now go reverse ... Receipts from customer - Firm - Pay to proprietary. Receipts from firm against the sale effected by proprietary.... Advise bill to bill adjustment.

Another solution is directly purchase from the supplier in the books of firm and sell to customers. Close down operations of proprietorship because it is just a part and parcel of the chain with limited importance.