Asset transfer from Proprietorship to Partnership between to legal heir partner after death of Prop.

Soumya Laha (Advocate & Tax Consultant)   (4693 Points)

28 September 2021  

A sole proprietor of a Trading Establishment has been deceased and his two legal heirs now formed partnership to run that Trading Establishment. The Partners have their personal business and they also invested capital to the Partnership firm apart from inherited assets. How to show these investments in Partnership Firm's Balance Sheet and Partner's Personal Balance Sheet ?