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Double entry?

Other side of entry on incorporation.

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I have a client that is a sports club that has recently incorporated. Upon incorporation the stock and assets were transferred to the newly formed company.

I'm now producing their first set of accounts and have debited the stock account and fixed assets but have no idea what to post the corresponding credit to. Any one one ideas?

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RLI
By lionofludesch
06th Feb 2019 10:10

Depends. Who owned the original club ?

Whoever it was - it's their money.

A bit of background would help. I take it this is a participation sports club.

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Replying to lionofludesch:
wolfy
By rob winder
06th Feb 2019 10:32

Sorry, a bit back ground would have helped.

The club was and is a register CASC, so it's owned by the members.

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Replying to rob winder:
RLI
By lionofludesch
06th Feb 2019 10:40

In the absence of any information to the contrary, I'd post it to reserves, possibly a separate one.

If the original members had claims on it, it could be shares or maybe a liability. You need to ask questions.

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