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Change of firm from proprietorship to partnership
Sir, Can you please confirm the treatment of Capital Account Balance as we have change the status of firm from Proprietorship to Partnership. What should we do if we are not able to return the balance of capital account to proprietor.
Replies (4)
You can show it as capital introduced by that partner( if the proprietor is in the existing firm)
Thanks for your reply, but if we don't want to introduce full amount of proprietor capital as partner capital than where balance amount would be transfer. If I am not wrong can we show the balance amount as loan from partner.
| Originally posted by : kishore | ||
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Thanks for your reply, but if we don't want to introduce full amount of proprietor capital as partner capital than where balance amount would be transfer. If I am not wrong can we show the balance amount as loan from partner. |  |
Yes, you are right if you don't want to return balance amount of proprietor capital then you can show it partner's loan account.
Thank you so much
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