Gopinath (Owner) 05 March 2011
My father was running a propreitory business and during his old age, added me and my two brothers as partners to the firm in 1998.I have 24% share of profits in the company. My father had initially purchased an asset in his name in 1979 which was shown in the company's book of accounts and then the same continued in our balance sheet even after the partnership deed was formed. Does the land belong to the company or my father?
Anil Kumar-Advocate (PRACTICE AS LAWYER/ADVOCATE) 06 March 2011
The Land was purchased in the individual capacity when the firm was having proprietorship status. The land was might be appearing in the capital account of your father and not Partnership firm.As a matter of accounting procedure the Land should not be appeared in the balance sheet of the firm bacuase it is self acquired-individual property. If the same is appearing in the Books of account, the same might be the status which the book was being maintained when the firm was in proprietorship status. This seem a detailed examination of the books. It appears to me that there are some miscomunication. However, leaving everything aside, the self acquired property may be devided as per the properties act, succession act and some other act prevailing in India.Could you be please to mail copy of balance sheet at legaments_adv@rediffmail.com.
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