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Whats's the correct double entry treatment

Whats's the correct double entry treatment for a transfer of clients from another company?

Whats's the correct double entry treatment for  a transfer of clients (Continuing the services) from another company?

For example you pay £20,000 for a transfer of clients (From another company) and the new company will continue with providing the services.

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By Ruddles
08th Nov 2018 21:46

Who’s asking?

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09th Nov 2018 08:00

Debit clients
Credit cash

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to lionofludesch
09th Nov 2018 17:28

...the op sits and thinks
"But surely he means Debit cash as it was money paid out, not received"
:-)

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09th Nov 2018 08:03

There is no “double entry treatment” for the transfer of clients. That is not a financial transaction.

The financial transaction is the payment of £20,000, which sounds like a sale / purchase of goodwill.

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By Pygmy
09th Nov 2018 14:10

Is "client" a euphemism for "slave" as "customer" is a euphemism for "taxpayer"?

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