Transfer of balance sheet from partnership to pvt. ltd.

Others 2191 views 4 replies

Niaz Ahmed

Others

3 Points Posted on 08 November 2018

We had a partnership firm in Bangalore, with two designated partners. We wanted to expand and convert the firm to a Partnership firm. Since for conversion of Partnership to Pvt Ltd required 7 partners, so we did not go for conversion. We prepared Balance Sheet and P/L Statements, then dissolved the firm, GSTIN and closed the Bank Account.

On 5th Novemeber, we incorporated the new Pvt. Ltd firm, by a different name, but the designated partner of partnership firm and directors are both same. And even the share ratio also remains the same.

I want to ask whether it is possible to carry over the same balance sheet from Partnership firm to newly formed Pvt. Ltd firm by any means(acquisition or sale or any other means)?

If so, I would be grateful to be guided regarding the same.

Replies (4)

RAGUL JAYAKUMAR

Student Others

27 Points Posted on 08 November 2018

you need to prepare a new trading profit and loss and b/s because now it comes to the company point of view you need to comply with regulations amended with companies act 2013

Vibha Trivedi

437 Points Posted on 08 November 2018

The partnership firm has been dissolved.Now the Company has to prepare its Financial Statements in accordance with Schedule III of the Companies Act, 2013.

Niaz Ahmed

Others

3 Points Posted on 08 November 2018

Originally posted by : Vibha Trivedi
	The partnership firm has been dissolved.Now the Company has to prepare its Financial Statements in accordance with Schedule III of the Companies Act, 2013.

@ Ragul and Trivedi Ji... Thanks for replying.

@ Vibha Trivedi... Is it permitted under Section III that the balance sheet of Partnership can be carried over to Pvt. Ltd... Both partners in the Partnership firm and Directors in Pvt. Ltd both are same. So, is it permissible to carry over all Assets and Liabilities to the newly formed company? Are there any steps where in we show transfer or sale etc?

Vibha Trivedi

437 Points Posted on 10 November 2018

Sir,

For transfer of assets and liabilities, on dissolution of the firm Realisation Account is prepared, the purchase consideration is worked out and purchase consideration is to be paid by way of shares to the partners of dissolved firm in the newly incorporated company.

On the first day of incorporation, opening Balance Sheet of new incorporated company is prepared which shows the assets and liabilities of the dissolved firm at the value agreed upon and also the share capital which is the no. of shares allotted to the partners in the new company in consideration of purchase.