12 July 2010
Dear friends A is the (P) Ltd It is formed by 3 directors Out which a is also one director who transfered his proprietor business to company as a whole how to make entry in directors books Whether as transfer? or sale? If sale Tax audit has to be done?
Take all the assets and liabilities on the book value and pay the purchase consideration to the director. If there is any difference in the amount paid it will be considered as goodwill/capital loss.
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