Question ID : 42274

Conversion of Partnership Firm into Sole Proprietorship Firm

In the year 1997, Mr. Akash started practice with the sole proprietorship firm name "Agrawal Akash & Associates". In 2012, the sole proprietorship firm was converted into partnership firm by entering two new partners - Abhishek and Ankita. In 2017, Mr. Akash retired from partnership firm. Now, ankita want to retire from firm and Abhishek wants to continue the same firm name "Agrawal Akash & Associates" with same Firm Registration No. so that the experience of the firm can be considered everywhere. Ques. 1 Can Abhishek continue as proprietor of Sole Proprietorship Firm "Agrawal Akash & Associates" ? Ques. 2 Whether experience of the firm will be considered for Bank Audits? Thanks & Regards,

The partnership firm should be dissolved and the sole proprietorship firm with the same name can be continued by the proprietor. But it should be intimated to ICAI by filing form and submitting partnership dissolution deed If the proprietorship firm is continued with the same name, experience of firm will be considered for bank audits.