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Cost price or market price

rakesh (IPCC Student) (342 Points)

27 March 2014

respective member's i have a query regarding closing a partnership firm sir my firm is closed on 31/03/2014 and start new name of pvt. ltd. in april 2014 sir we have closing stock of our firm rupee 800000/- aprox. shows in balance sheet or sale to new company. and if show then it show on at cost price or market price

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Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 28 March 2014

Dear sir, if the stock is taken over by other firm then should be done in cost or market price whichever is lower and if the firm is dissolved and not taken over then should be done on market price. Regards

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rakesh (IPCC Student) (342 Points)
Replied 28 March 2014

If sales to new company then what is producer is same as its sales or other

rakesh (IPCC Student) (342 Points)
Replied 28 March 2014

In case of sale the vat is applicable @ 6.05% and purchase new company before 31 st march. The new company start wirk on first april and firm is closed 31 st march i so confuse please help me

rakesh (IPCC Student) (342 Points)
Replied 28 March 2014

Work on 1 st april F/y 2014-15

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 28 March 2014

Dear i am not 100% sure but in this case sales will not be booked and jv(s) should be made in book as partnership firm is changed to company. So book it on cost basis in books of accounts as transfer entries. Regards

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rakesh (IPCC Student) (342 Points)
Replied 28 March 2014

Okey thanx sir Partnership audit is copursuly or not when partnership ffirm is closed

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 28 March 2014

Depends on your turnover.

rakesh (IPCC Student) (342 Points)
Replied 28 March 2014

40 lakh p.a. is compusely to audit

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 28 March 2014

Section 44ab ask for 1crore so not required to get your accounts audited. But i suggest you to do so as when a firm is usually closed scrutiny cases comes in. Regards

rakesh (IPCC Student) (342 Points)
Replied 28 March 2014

Thanx for ur pricious guidelines Regards

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CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 29 March 2014

dear as per my concern since partnershio is closing down on 31.3.2014 hence on dat date ...closing stock shall be sold at agreed price between partner but it should not be less then market price. aftrr that one of partner purchase in his name nd when copmany incorporated the same shall be sold by partnr to com. at the same price at which he has purchased. by this procedure u will save from any procedding like scrutiny by income tax.

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