The Book-keepers Forum (BKF)

Post Info TOPIC: Double entry on the sale of ID trade receivebles to a 3rd party


Newbie

Status: Offline
Posts: 1
Date:
Double entry on the sale of ID trade receivebles to a 3rd party


The 3rd party is in the US is a newco & albeit 1 director is the same it is not a subsid. The US ledger was factored in the UK  & now transferred to the the US. All figures $

The 110k is an introduction of cash to facilitate the shortfall in reserves to the existing lender. This was via  transfer to the US company bank a/c which in turn was paid across to the new lender in the US. to facilitate the funder transfer.

The US Newco entries are fine. The 310k represents the net difference on the 670k less 360k owing to the exiting lender. effectively the 360k less 110k cash injection was an inter funder transaaction hence, the net position owing on the ledger is 310k + 110k cash = 420 on the loan a/c.

May seem a thick question but I can only see the balancing credit entry for the UK business either as a non vatable trade sale and/or a transfer to a B/s P&L reserve a/c. Entries 3 &/or 4.

Thanks in advamce

 

 

  OP Bal DRCR Cl Bal
        
Debtors    -670  
        
        
        
  670 0-670 0
        
        
Curr A/c   670   
        
        
        
        
  -670 6700 0
        
        
Bank1  110   
 2   -110  
        
  0 110-110 0
        
        
I/co       
 3  310   
 2  110   
        
  0 4200 420
        
        
        
        
DLA1   -110  
        
  0 0-110 -110
        
        
Sales3/40 310-310 0
        
Reserves40  -310 -310
        
  0 1510-1510 0


__________________


Master Book-keeper

Status: Offline
Posts: 8646
Date:

Hi Brian

So hows about an intro before we start. We always ask newbies!

Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, who is your MLR/practice licence with, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.

Can you add your first name so that it appears under the signature bar on your posts please. Saves everyone looking it up each time!! (Edit profile --->signatures)

The formatting of your numbers is skewed and whilst I could work it through, I really cannot be bothered (ie dont have time) so perhaps add it as an excel doc.

Might help gain others commentary if you dont use abbreviations - not everyone knows what 'ID' is although that wouldnt necessarily stop them from answering.

Not entirely sure what your question is,although I could probably hazard a guess. Perhaps you could expand.

Have you seen any finance agreements/other legal documentation?

What is the connection between the two companies - you say not a subsidiary, but otherwise its unclear.

What are your thoughts on treatment?



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Senior Member

Status: Offline
Posts: 359
Date:

Another one!

__________________

Caron



Master Book-keeper

Status: Offline
Posts: 8646
Date:

Yep!!

Oops on my last two lines, the big ad got in the way of one of them. But its an obvious D/E answer when one can be bothered to look at the skewed data.

Obviously, despite being back on there is no response so will consider the posting as closed.



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Master Book-keeper

Status: Offline
Posts: 8646
Date:

Cheshire wrote:

Yep!!

Oops on my last two lines, the big ad got in the way of one of them. But its an obvious D/E answer when one can be bothered to look at the skewed data.

Obviously, despite being back on there is no response so will consider the posting as closed.


 Testing the new 'delete' function.

 Edit.... Nope, not working fully!



-- Edited by Cheshire on Sunday 21st of July 2019 10:42:20 AM

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About