stock transfer query
clearaccounting100
Registered Posts: 49 Regular contributor ⭐
Hi i am doing some accounts work for Ltd co. the director wants to go on his own as self employed. He is thinking now of leaving the company as dormant and starting his own self employed venture. He would be VAT registered as a sole trader as is the Ltd company presently. He would be buying the stock from the ltd company as his opening stock as a sole trader. Can anyone please let me know how i account for this in both sets of accounts? Any help would be much appreciated as my brain is fried!:confused1:
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Comments
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The stock would be a sale to the Ltd co and a purchase for the sole trader. This stock would need to be physically paid for unless there is a sufficient directors loan balance to use.
Not sure whether there would be an issue with HMRC that stock should be sold at realistic sale value rather than cost.0 -
Is it a transfer of a going concern? If so, have a read here.0
