Books of accounts

This query is : Resolved

lingam (Querist)
Follow

01 July 2013 My proprietorship firm converted to private limited company on 27/04/2013 mentioned in MOA that all assets & liabilities taken over by private limited company and agreement is also made mentioned that books of account will be maintained from 01/04/2013 onwards

My question is
Does we need to maintained both accounts i.e 01/04/2013 to 26/04/2013 of proprietorship and 27/04/2013 31/03/2014 of private limited company ?

Please clarify

Thanks & Regards
Mr.Lingam

Karan Teli

Karan Teli (Expert)
Follow

01 July 2013 Start maintaining from first April itself. Account as per profit prior to incorporation and capitalize all the revenues.

lingam

lingam (Querist)
Follow

01 July 2013 Thanks sir
but profit earned prior to incorporation is related to proprietorship firm does proprietor needs to pay tax on it or company will pay.

Please clarify

Upgrade to CAclubindia Pro. Subscribe Now!

Karan Teli

Karan Teli (Expert)
Follow

01 July 2013 As said by you the moa has date of 1April so tax will be paid by company not individual.