Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Soumya Laha (Advocate & Tax Consultant)     28 September 2021

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

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 ?



 3 Replies

Rama chary Rachakonda

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)     28 September 2021

When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book value.

Anytime a partner invests in the business the partner receives capital or ownership in the partnership.  You will have one capital account and one withdrawal (or drawing) account for each partner.

Soumya Laha

Soumya Laha (Advocate & Tax Consultant)     28 September 2021

A partner introduced Rs. 100,000 as non cash assets and Rs. 100,000 as cash in the partnership firm. Capital interest will be calculated on Rs. 200,000 or Rs. 100,000 ?

Raj C Doshi

Raj C Doshi (Practising CA)     29 September 2021

Dr. Non cash asset 1L
Dr. Cash 1L
Cr. Partners capital account 2L


interest on Rs. 2 lakhs

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags