Hi,
my query is regarging the conversion of a proprietory concenr into a partnership business.
Scenario:- A, B , C & D are four individuals. A has a sole proprietory concern of his own.
Now the four said individuals decide to form a partnership firm. B, C & D induce their share of capital by way of cash.
However, A for his share of capital introduces all his sundry creditors, Sundry Debtors, Work-in-progress & movable assets.
Hence my question being will A suffer capital gains in his individual file ?
kindly reply to this query at this earliest.
CAclubindia
