Accounting treatment in books

conversion means all assets & liabilities are taken as it is in the books of company.

.. all assets & liabilities except (capital of partners,and  R & S) should  be taken at book value in co. books.

 than partners claim( fixed cap+floating cap+share in R & S) should be discharged by way of issuing equity shares

for e.g. x y z are partners psr 1:2:3

all assets 12 lacs

capitral x 1

y 2

x 3

R & S 3

other liab 3

co. books

equity shares 9 lacs

other laib 3 lacs

assets 12 lac

. above e.g for common understanding, calculations may be change as per terms & conditions between partners..

Thanks Lokeshji. But, does it mean that partners' capital and reserves and surpluses shall be taken as paid up capital i.e. fixed capital of the Company. Then what will be the floating capital and reserves for the Company? Please clarify.

Sir,

 Further, i would like to clarify that whether partners' capital and reserves and surpluses be bifurcated into paid up capital, securities premium account and unsecured loans of the Company as the Company does not want to show the full amount as paid up capital of the Company. And, if its not possible then what is the reason behind it..? Please reply.

if co., dosent want to show full amount as paid up equity capital than it can be bifurcated into sec. premium also. for this shares to be issued at premium. e.g. face value 10 premium 5

& if total claim is 7.5 lac than no. of shares issued will be 50000

ok thanks sir.

Dear Lokesh,

Please help further can we bifurcate the partners capital into share capital and unsecured loan. Say i am having partners capital 90 lacs now i want to keep only 1Lac as share capital and rest as unsecured loan. What is more beneficial , LLP or Pvt Ltd. company