Conversion of partnership firm into properitership
Kumar Bishwajeet (Article) (68 Points)
11 August 2020Also how to treat the capital of partners after conversation.?
Kumar Bishwajeet (Article) (68 Points)
11 August 2020
Asha Kanta Sharma
(Manager - Finance & Accounts)
(36350 Points)
Replied 11 August 2020
Capital Accounts does have a credit balance in BS and it means it is a liability for business to return back the capital taken from partners. So when one partner leaves business settles his account with Cash or with Kind or both. In this case Capital Account needs to be debited and Cash Account Needs to be Credited and any other Asset which is being settled to their FnFs needs to be credited...
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