Question ID : 44663

194298

Partnership firm is taken over by a partner, all assets and liabilities at book value at 31.03.2024 and continued business as proprietor from 1st April 2024. should the financials of firm as on 31.03.2024 reflect this transfer or it will be taken as post financials event? normal financials to be prepared for firm as on 31.03.2024?

Answer ID : 85436

The financial statements as of 31.03.2024 should reflect the partnership firm's status before the takeover, with the takeover and subsequent continuation as a proprietorship treated as a post-balance sheet event.

Answer ID : 85439

But the takeover date is 31.03.2024, should it be reflected in financials as it will show a fair picture as there is no going concern as on this date only. All assets are taken over and The partners have retired as of this date, shouldn't it be reflecting in financial statements?

Answer ID : 85445

Normal Financial to be prepared for the firm as on 31.03.24

---