If a partnership firm is converted to a proprietor ship business and the firm is wholly hold by one of the partner then what will the accounting treatment?
Also how to treat the capital of partners after conversation.?
Menu
Conversion of partnership firm into properitership
Replies (1)
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...
Recent Topics :
- [NO COURSE/NO FEES] A Senior Finance Manager’
- [NO COURSE/NO FEES] A Senior Finance Manager’
- On which amount 200% penalty under section 270A is
- RECEIVED INTIMATION U/S 399 FOR TDS PAYMENT ON PRO
- How do CA firms track SEBI/AMFI circulars and dead
- Jurisdictional validity of Sec 148 notice after fa
- Taxable Income or Not
- GST Input Tax Credit (ITC) on Camera Purchase &
- What makes CA Himanshu Singla different from other
- TAX TREATMENT AND ACCOUNTING ENTRIEOF PERQUISITES
Related Topics :
CAclubindia
