Part ix conversion

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Neetu Agrawal

PCS

182 Points Posted on 06 August 2012

hi,

i hv some queries in relation to conversion of partnership firm into pvt ltd thru part IX:

1) at the time of conversion only the capital acount shud be considered for share capital or capital n current account both taken together shud be taken as share capial?

2) The balance on the conversion date wud be taken for share caoital or the intial contribution as mentioned in partnership deed?

3) If the capital amount is less than the minimum requirement of Rs. 1lac what shud we do and if it is greater than the requirement of RS. 1lac hw to reduce the same (client want to reduce the capital account)?

4) Is public notice required for part ix/ if yes then at what stage?

Replies (3)

Ankit

CA CS

2674 Points Posted on 06 August 2012

Dear Neetu,

1. capital and current account both. since both these amounts belong to the partner. it is only for convinience, that the fixed capital method is followed. had the firm been following fluctuating capital method, the whole capital account would have been taken.

2. the balance on the date on conversion. since that is the final amount receivable by the partner and hence he shoud receive the same share.

3. the firm pays off the partners and thus reduces their balance in the account to 1,00,000 and then proceed with the conversion.

Neetu Agrawal

PCS

182 Points Posted on 06 August 2012

Dear Ankit,

Thanx a lot for ur prompt reply...

cn the capital be adjusted in ratio between share capital and unsecured loan from directors? and it wud be gr8 if u cn mail me some checklist or a draft of supplement deed.

Kindly share ur views in respect to notice to public?