Proprietorship to Partnership firm, Income Tax

[Raman Singla]

During 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 ???

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

It depends upon the agreement made between the parties to the conversion.