Mohan Kale 08 August 2020
A propritory business transactions (sales and purchase) have stoped post death of the proprietor (i.e. business has been discontinued but dtaff is still there) during the year say on 13/12/2019. However, business expenses such as salary to staff, staff welfare, etc. were met from business as well as personal bank accounts of the proprietor and his wife. Business as well as personal assets of the proprietor have been distributed as per WILL within a month (i.e. before end of FY) and probate has been filed. My queries are
1. Whether under the circumstances accounting of business account for claiming expenses can be continued?
2. Or whether to close business accounting on the death of proprietor and transfer everything to legal heir as per execution of WILL?
3. Any other tbing that occures to you?
Thanks in advance.