I am buying into an accountancy practice (limited company) and taking my client list with me. I will be paying some cash consideration to the existing director for their shares. We will each own 50% of the shares. I’m confused about the correct journal entries that should be made at the date of transfer. Can anyone shed some light please?
Existing LtdCo clients = £100k
My clients = £40k
Cash consideration = £30k ((£100k + £40k / 2) less £40k clients I’m bringing)