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Entry in books after death of proprietor

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729 Points Posted on 26 December 2021
Dear Sir

after death of proprietor capital account value transfer to his both sons 31.03.21 please suggest in busy which group we create the ledger proprieto,s both sons
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On 26 December 2021 at 13:20 Report
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021
Pass entry if capital of old proprietor transfer to both the son's in proportionate or as per agreement , So same capital brought in the business buy both the son's .

Proprietor s Capital A/c Dr
To Son A Capital A/c Cr
To Son B capital A/c Cr
( Being old proprietor capital account transfer to both son )

Both the son's Capital account will be under Capital account , liability side , Balance sheet.
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On 26 December 2021 at 13:54
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729 Points Posted on 26 December 2021
Sir, In Proprietor ship 2 Capital account it's correct.
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On 26 December 2021 at 15:26
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021
Only one can become proprietor .
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On 26 December 2021 at 15:33
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021

I  thought  you are converting  Sole proprietorship  in to partnership firm .

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On 26 December 2021 at 16:02
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729 Points Posted on 26 December 2021
No, Sir No Partnership firm Only Proprietor ship
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On 26 December 2021 at 16:05
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021
If both the son's have taken over business then , it's partnership only .
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On 26 December 2021 at 16:16
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021

Or only one can become proprietor  and  you can pass capital  transfer entry .

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On 26 December 2021 at 16:20
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729 Points Posted on 26 December 2021
Sir, in 01.04.2021 current financial year same firm transfered to big son he is the Proprietor of firm we can creat the ledger under capital account so please suggest for Group for second son
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On 26 December 2021 at 16:24
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021
He will not be the part of Business , if sole proprietorship firm . So how we can create ledger account of his name ?.
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On 26 December 2021 at 16:35
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021

If  second son  want to be the  part of business then , they can  convert in partnership Firm .

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On 26 December 2021 at 16:43
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729 Points Posted on 26 December 2021
Sir, Second Son don't want to part of business.He taken his amount by cheque in current financial year.
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On 26 December 2021 at 20:21
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GST Practitioner & Accounts
15093 Points Posted on 26 December 2021
If amount withdrawn from Business to pay younger son by the proprietor ( elder Son ) , then you have to show as drawings . so in my opinion you do not create ledger of his younger son , instead you have to create ledger as drawings , later on will be debited to proprietors capital account.
whatever amount withdrawn from business as drawings will be paid to younger son .
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On 26 December 2021 at 20:48
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729 Points Posted on 27 December 2021
Thank you very much Sir,
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On 27 December 2021 at 09:05
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GST Practitioner & Accounts
15093 Points Posted on 27 December 2021
Welcome .
Actually I confused when I first read your query I thought you converting sole proprietorship in to partnership firm , any way it's ok now .
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On 27 December 2021 at 09:18


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