Hello AccountingWeb gurus,
During my brief time looking after our company accounts I've found the information on this site to be invaluable and hope you are able to help with this query.
We've reluctantly decided to pull the plug on our business and I was hoping someone might be able to help me understand the process of winding up the business , specifically the distribution of assets between shareholders.
The company has no debts, no employees and has not sold anything for 4 months. We are planning to have the company struck off the register but noted that a couple of things need to be done prior to filing the DS01 form, notifying HMRC of our intentions and deal with our assets and accounts.
We have money in the bank and assets (in the form of unsold stock) which we plan to divide equally between ourselves.
Am I right in thinking we can simply divide the remaining stock evenly between shareholders (paying VAT on the purchase/cost value of the stock), submitting our accounts and tax return to HMRC stating they are our final accounts and once settled split any remaining bank balance between shareholders and file the DS01 ?
Presuming the above is correct, can I allocate the stock to shareholders using journal entries or could someone advise of the proper way to do this ?