Sole Trader to Partnership

ArulArul New MemberPosts: 8Registered
Have a small sole trader client im just finishing her last accounts as sole trader for year ending 5 april 09. She has now registered as a partnership with her husband as of 6 april 09. Its for the same business.
My question is do i just bring forward her balances from her sole trader company into the new partnership from her balance sheet? Im unclear about this part. She has 15k on her balance sheet and she has advised me that she wants to split this 50:50 with her husband.

I just want to know if it is as straightforward as this or are there further implications that I may need to be considered.

They have drawn up a partnership agreement and everything is 50:50.

Any advice you may have would be appreciated. thankyou.

Comments

  • groundygroundy Trusted Regular Posts: 495Registered
    You could use a joint capital account that way the brought forward balance would be shared equally as there would be just one capital account.
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