Forum Message

how to record the purchase of a business ?

Hi there...i have recently bought all of the assets of an embroidery company from a friend.
I literally bought all of the furniture, software machines etc, there is no goodwill and no outstanding order book.

I paid £8000 cash for everything and moved it all to my own premises.

How would this be recorded ? do i put one simple transaction in for £8000 or do i need to break it down to every item.

Regards

Simon


Posted by Simon Clarke on Jul 7, 2014 11:27 AM BST

Hi Simon,

Firstly create new asset accounts for each category of asset, such as Furniture, Software, Machines, etc.

Then create a new Money Paid Out transaction for £8,000 with the Type field set to 'General Payment'. In the Allocate To Account table enter multiple lines - one for each asset account you created above.

This is similar to the Money Paid Out transaction shown at the top of this page:
http://www.solaraccounts.co.uk/help/how-to-record-an-asset-purchase-or-sale.php

Cheers


Posted by Mark McLaren (Solar Accounts) on Jul 8, 2014 9:51 AM BST