Raman Singla (Accounts Services) (167 Points)
07 February 2021During Conversion of Proprietorship to Partnership firm... with assets and liability except which are doubtful to the new partnership firm(to the new partner) belongs to proprietorship.....Can we leave those doubtful (Unsecured Loan+Loan Advances,Sundry Creditors related to Proprietor) ??....What will be treatment of those Unsecured Loan+Loan Advances and Sundry Creditors in the balance sheet of Proprietorship ???
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3303 Points)
Replied 08 February 2021
All the assets & liabilities (including unsecured & doubtful debts) will be transferred in to firm as it is / at book value. The Proprietor will also be one of the partners out of other partners. The balance of capital account of the erstwhile Proprietor will be treated as the capital contribution of the Partnership firm.
Raman Singla
(Accounts Services)
(167 Points)
Replied 08 February 2021
Can't we leave them to sole responsibility of the proprietor by transfer those(unsecured loan and advances) item to capital account of proprietor and leave them as it's personal liabilities and assets.
CAclubindia
