[aaykarbhavan] Re: Inquiry : Income Tax

Sir, thank you very much for your reply. Kindly guide me further :

 

(1)  Can  this Land be debited, at Book Value, to the capital account of the Partner who purchased the land in his personal name when he was the sole proprietor, so that it no longer remains as an asset of the Firm and no more reflected in the balance sheet of the Firm. 


(2)  Who is the actual owner of the land at present.

 

 

(3)  If the Land is sold, to whose account would the capital gain go. Firm's account OR the Partner who purchased the land in his personal name when he was the sole proprietor.

 

 

(4)   What should be the best solution. The Partnership Firm is to be closed.

Sonali

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From: kapadia <kapadiadr1@rediffmail.com>
To: aaykarbhavan@yahoogroups.com
Cc: jalgaoncas@googlegroups.com
Sent: Friday, 23 August 2013 6:06 PM
Subject: Re: [aaykarbhavan] Inquiry : Income Tax

On Fri, 23 Aug 2013 15:23:40 +0530 wrote
>

Sonali,

Your first option will be correct, if the land remains the individual property after the
formation of the partnership.

If the land remains the property/assets of the partnership firm as per the terms of
partnership the value of plot as on the date of formation of the partnership or as agreed
between the partner shall be recorded in the books.-------kapadia























Kindly Advise :
A
proprietor of trading business purchased a piece of land ( a plot ) in his
personal name. This land was reflected as an asset in the balance sheet of his
proprietorship business. After some years, a partner was added to the existing
business and proprietorship concern converted to Partnership Firm.The
new partner made contribution of his capital and all the old capital and assets
of the previously proprietor of the business concern remained as such, that is,
the Land bought in his personal name remained in the books of the firm. Kindly
guide;1) Could this Land be debited, at Book Value,
to the capital account of the Partner who purchased the land in his personal
name when he was the sole proprietor, so that it no longer remains as an asset
of the Firm and no more reflected in the balance sheet of the Firm.







2) Who is the actual owner of the land atare present. If the Land is sold, to whose
account would the capital gain go. Firm's
account OR the
Partner who purchased the land in his personal name when he was the sole
proprietor.

Best Regards.

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