Forum

• # 74118
• Wed 07 Sep 2011 12:12 AM

Hi,

My workplace has been taken over by a new company. It was a few days earlier than originally
planned as they decided it'd be neater to have the takeover at the beginning of the month.

Because of that my new boss made an agreement with my old boss where she would give her a
percentage of the profit taken on those few extra days to make up for it. It has been worked out and
she will be paying that to my ex-boss in the next few days, but I can not think how to enter this into
the books.

Can anyone help me please? Would be much appreciated as I can't seem to get my head around it.

Many thanks

• 
  Quote
  

• # 74124
• Wed 07 Sep 2011 01:53 PM

Hi,

The  additional amount will be treated as part of the sale price payable to your old boss.

Khalid Hussenbux.

• 
  Quote
  

• # 74128
• Wed 07 Sep 2011 02:19 PM

I am open to correction (as there may be tax issues) but my thought was that anything paid after the actual takeover date could(should) be dealt with by way of a commission payment from the new owner paid against a proper invoice from the old.

Geoff

• 
  Quote
  

• # 74207
• Sat 10 Sep 2011 11:50 AM

Hi Smiley Miley

As you have seen two different replies with two different answers.

Both are correct it all depends on the wording of the contract of sale, If I was you i would refer this one to their accoutant an let them tell you how they ish to treat it as they should have the details of the sales contracdt.

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
• 
  Quote