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, I want to close my company, and transfer my remaining

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Hello, I want to close my company, and transfer my remaining stock to myself (I'm the only director) as the business owes me money anyway from director loans I've given to the company. I'm not sure of the best way to do this though, as I can also give the stock to myself as the sole shareholder can't I. I'm not sure how to represent this in my accounts, or I need to at all?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

My advice is as follows. Transfer the stock at cost price or net realisable value, whichever is the lower, and reduce your director's loan by this amount. The book keeping entries would be:

Debit Directors' Loans {DL), credit Sales.

You could then write off the balance of the loans: Debit DL, credit Profit and Loss Account.

You now have a 'clean' company to sell on. You can even do this on eBay and get a little of your money back.

I do hope I have helped shed some light on your situation.

Customer: replied 2 years ago.

ok, thanks, ***** ***** logical

I also thought it would be easy to just give myself the stock as a shareholder which is what you can do when closing a company, but Ive no idea how to represent this too . I'm gonna strike off the company, and not resell it.

Expert:  bigduckontax replied 2 years ago.
Selling it off on eBay is easier than the current palaver of striking off. However, that is your choice.
Taking the stock is effectively what you are doing when you go through the book keeping motions I suggested.
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bigduckontax, Accountant
Category: Tax
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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