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Goodwill on incorporation

Sole trader incorporating into Ltd company 6 July2015, trading as a nursery

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A new client needs to prepare Ltd company accounts for year ended 31 July 2016. They incorporated on 6 july 2015. They need to transfer the nursery business into the Ltd Company. I relaise they are very late with fines. Let's say there is £150k of goodwill (i have not yet calculated but seems a reasonabble amount). Under FRS102. I will DR Goodwill but CR (confused). I also realise that goodwill will be amorrtised over 10 years but in the accounts it will be removed for tax calculation as no longer allowable for tax calculation. 

Historically, would have CR director loan account, but cannot do this now. I have come across another set of accounts where there is goodwill and then share capital increased by the same amount. Also, what would be impact on the sole trader personal self-assessment.

Would really appreciate a reply. I need to completee this asap and am confused.  

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By andrew1211
22nd May 2018 11:21

Why can't you Credit the directors loan account?

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