Person shut down his former firm on 31st Mar, 2012 and on 1st April, 2012 he started new fresh firm.
My Question is:
Can he transfer his "CASH-IN-HAND" Balance from his former firm to his latter firm?
And if it can be done, than will there be any limit to it?
I think, Firstly he has to close the books of old firms and withdraw all the cash. Then he can introduce the cash in to the new firm.
a/c. entrries in old firm will be
To cash account Credit
By Partners Capital Account Debit
in new firm
By Cash A/c. Dr._______
To Capial A/c
Please suggest any other view is there,
| Originally posted by : ALPESH KUMAR | ||
 |
I think, Firstly he has to close the books of old firms and withdraw all the cash. Then he can introduce the cash in to the new firm. a/c. entrries in old firm will be To cash account Credit By Partners Capital Account Debit in new firm By Cash A/c. Dr._______ To Capial A/c Please suggest any other view is there, |
 |
Well its not a partnership firm..... well its a persons HUF company.... and karta is the sole proprietor.....
Well i didnt got ur first entry..... actually bit confused....
when the business is closed, cash lying at the end of all the adjustment will be taken away by the proprietor to close the affairs of the balance sheet. At that time entry will be
By Proprietor's Capital Account Dr.
To Cash Account Cr.
well last thing...
Should i make my old companies cash in hand bal zero?
And let me know one more thing...
Thinking of making first entry on 31st march and making 2nd entry in newly form company on 1st April...
Is this legally and logically possible?
when u r closing one conceren, all the accounts in the balance sheet will have to be settled and closed. When u r starting new business concern under the different name and style u have to start from zero, it has nothing to do with the transactions and accounts with the closed company.
CAclubindia
