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My business partner wants to sell his shares.

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Hi. My business partner wants to sell his shareholding (50% of the company).

I would like to know how to account for this transaction in my annual accounts.

Thanks for your help

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By Accountant A
15th Jun 2020 20:40

[7t

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JCACE
By jcace
06th Mar 2020 12:31

Correct me if I'm wrong, but your business partner wants to sell something that he owns personally, i.e. his shares. So the company isn't selling anything, nor buying anything (from what you've said), so it doesn't appear to be a transaction for which it needs to account.

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By Trethi Teg
06th Mar 2020 13:05

Heaven help your clients.

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Replying to Trethi Teg:
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By Accountant A
15th Jun 2020 20:40

97t

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Replying to Accountant A:
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By Bob Loblaw
06th Mar 2020 15:17

Spoiler alert: he actually is an accountant.

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By Trethi Teg
06th Mar 2020 13:05

Heaven help your clients.

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RLI
By lionofludesch
06th Mar 2020 15:40

Come, come - you've all missed the point.

The OP asks how to account for the transaction in "his" accounts.

Not the company's.

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By Clinton Lee
07th Mar 2020 16:01

Who's he selling the shares to? Or is that not relevant?

If it's the company buying the shares back it's a lot different to you buying the shares.

And when you say "my annual accounts" are you talking about your personal accounts or the company's accounts?

Have you considered speaking with an accountant. I strongly recommend you get a lawyer involved as well and put a proper SPA in place!

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Replying to Clinton:
RLI
By lionofludesch
07th Mar 2020 17:04

Bob says he is an accountant.

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