Assets/Directors Current Accounts?

Strantona

Can any one tell me the correct way when sole traders set up one man band Ltd companies, what they do with assets.
Some people say for sole trader to raise sales invoice plus vat to Ltd Company, then ltd company has purchase invoice which they then claim vat and then do purchase credit through the Directors current account ?????????

Some say just to o/bal Assets on ltd company then double entry again through directors current account ?????

Monsoon

Strantona wrote: »

Can any one tell me the correct way when sole traders set up one man band Ltd companies, what they do with assets.
Some people say for sole trader to raise sales invoice plus vat to Ltd Company, then ltd company has purchase invoice which they then claim vat and then do purchase credit through the Directors current account ?????????

Some say just to o/bal Assets on ltd company then double entry again through directors current account ?????

You need to read up on Incorporation Relief - there are various ways of doing this and its important to get it right.