i have a sole proprietorship business ,now i am closing it & starting a partnership business, what documents do i need to transfer closing inventory of the old company to the new partnership? basically what do i need as proof that this inventory/goods was transferred from the old company so i can add it to opening inventory of new company
It is basically a "sale" from you to your new company. You will debit inventory and credit the shareholder loan for the value of the inventory. Fill out a GST 44 to allow a sale without GST, as you would charge and remit it normally, and the company would pay it and claim it back. The GST 44 allows a "wash" of the GST/HST. List the inventory at cost. The form can be found here.
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