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


Newbie

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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 BalDRCRCl Bal
Debtors-670
6700-6700
Curr A/c670
-67067000
Bank1110
2-110
0110-1100
I/co
3310
2110
04200420
DLA1-110
00-110-110
Sales3/40310-3100
Reserves40-310-310
01510-15100


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Master Book-keeper

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Posts: 7865
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

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

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



Senior Member

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Posts: 162
Date:

Another one!

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Master Book-keeper

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Posts: 7865
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

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

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



Master Book-keeper

Status: Offline
Posts: 7865
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

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

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

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