Ratio in case of conversion of partnership firm into cos

This query is : Resolved

CA ROHIT KUMAR SAMAR (Querist)
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23 October 2008 My client is converted from parternship firm to company as on 15th april 2007 and its partner capital was converted into share capital of the company.
For the purpose of calculating average working capital turnover ratio,as on 31st march 2008,should i take WC of partnership firm as on 2007.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 October 2008 What is the purpose of calculating this ratio, that is where do you want to declare this?

Lalit Maheshwari

Lalit Maheshwari (Expert)
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13 August 2010 I think you are confusing between working capital & Partners Capital

Working capital is cirrent assets Minus Liabilities , for purpose of ratio take this number as on march 31,2008

further whre u require to sumbit this ratio

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