Buying a partner's asset

jennywilson Registered Posts: 1 New contributor 🐸
A partner is introducing his second hand car into the company.

It was bought 2 years ago for £75,000, a deposit of £10,000 was paid.

The car is now worth £31,000 but the finance outstanding is £34,000.

The partner paid the deposit and the monthly payment for the last two years.

The partner concerned would like the deposit paid back to him which I assume would be shown as other income so is subject to tax and ni.

When introducing a second hand asset is a written valuation required and if this is lower than the outstanding finance what are the entries in the accounts?


  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
    Car purchase

    Hi Jenny

    Could you just clarify whether this is a director bringing his car into the company or a partner bringing his car into a partnership.
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