Proprietorship to Partnership firm

[Raman Singla]

During Conversion of Proprietorship to Partnership firm... with assets and liability except which are doubtful to the new partnership firm(to the new partner) belongs to proprietorship.....Can we leave those doubtful (Unsecured Loan+Loan Advances,Sundry Creditors related to Proprietor) ??....What will be treatment of those Unsecured Loan+Loan Advances and Sundry Creditors in the balance sheet of Proprietorship ???

AI Summary

Converting Proprietorship to Partnership: Handle Doubtful Assets, Liabilities Per Agreement, Including Unsecured Loans and Creditors A query was raised about the conversion of a proprietorship into a partnership firm, specifically regarding the handling of doubtful assets and liabilities, such as unsecured loans, loan advances, and sundry creditors related to the proprietor. The question asked whether these could be excluded from the transfer to the new partnership. The response indicated that the treatment of these items depends on the agreement between the parties involved in the conversion process.