Conversion of sole proprietor to private limited

Co Act 2013 83 views 1 replies

parampara jain

1 Points Joined August 2021

Dear sir/ Mam,

I have a query that when we convert sole proprietorship to private limited

If shares are not alloted for the whole sale consideration then where to show the remaining cash part in balance sheet of the company

Kindly help

It's urgent

Thanking you in advance

Replies (1)

Chirag

Professional

1979 Points Joined December 2017

Assuming Proprietorship value is INR 100 and you are alloting shares of INR 70 to existing proprietor and remaining INR 30 ,can be in form of assets you acquired, which is liability towards existing proprietor or if he/she forgoes the right then most probably it will go in reserves..