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Limited company accounts - Journal entries question

holidayholiday Registered Posts: 2
in Technical accounting queries
There are 2 Shareholders of a Limited company and one of the Shareholders has sold all of their shares to the other Shareholder.
There is a 2 year payment schedule for the sale, what are the accounting entries to make the payments.
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Answers

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,280
    From the limited information you give it seems that an individual has sold his/her shares to another individual. How are the company's accounts affected?
    burg
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  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,370
    Agree. It appears as though this was a personal transaction that doesn't affect the company accounts. Some minutes need drawing up and the Companies House records updating when the next confirmation statement is done.
    Regards,

    Burg
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