Hello freinds.
Here are my queries:
1) Mr X has invested in a partnership firm Xyz with capital introruction from time to time. How will this bcapital and profit from the firm be accounted for in his personal books?
2) He has another business in sole propreitorahip. If he takes money out of this to introduce in the above said firm, how will this be accounted? Unsecured loan?
I am co fused regarding accounting rreatment of various propreitorships of the same person.
Kindly explain in detail.
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Accounting for Two Sole Propreitorship business of same aasessee
Replies (5)
1. THe investment in the partnership firm will be shown on the asset side of the balance sheet as investments.."investment in XYZ firm".all the addition withdrawal shall be reflected in that account,a also profit/loss, remuneration,int on capital.
2.,no
.. under same head as above
2.,no
.. under same head as above
Thank you Kajal Jain. The 2nd answer is not clear. Kindly explain
if he takes out money from the proprietary business to invest in firm..then same same will be considered as Introduction of capital in firm...
an if it's vice versa thn drawings from the investment in firm and u secured
an if it's vice versa thn drawings from the investment in firm and u secured
unsecured loan in proprietary bs...
sorry incomplete and got posted
sorry incomplete and got posted
Thank you.
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