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Acquisition of business
Dear Sir/Madam
There is a company which had acquired two-sole proprietors business on 1/1/16. What wil be the accounting entry for such acquisition in books of both parties???
The company gives shares as consideration to the sole proprietors. So will dis shares be shown in proprietors balancesheet?
Replies (1)
Hi Varsha
Transfer all assets & liabilities of proprietorship concern to company books and balance (proprietor's capital) will be share capital. Divide the share capital by face value, you will get the shares issued. Then, follow ROC compliances.
Thanks
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