Friends, i have stucked in one accounting treatment but i hope you will help me to come out from this. Problem is as follows:::
A Propriotership firm has been transefered wef 01.04.12 to another person (husband of old prop). At the time of transfer, old prop had Rs 3 laks in her personal balance sheet as Investment in Firm as this amount was Capital balance in Firm on 31.03.12. Now , old prop did not transfered any amount via cheque etc to new prop. Also new propr had given Rs. 2 lakh as loan to firm before transfr.
Now my question is that>>
1. > Where will Rs 3 lakh be reflected in New Prop's Personal Balance Sheet.
2. > What will be treatment of Loan already given by new prop to firm before conversion.
3. > Is there any Capital Gain Treatment.
Advise me ...
Thanks
CAclubindia
