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Transfer of a sole trader into a Ltd company

  • Member PM.Dip
  • Practice Licence
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  • # 122743

I need to find out about the opening balance sheet figures of an incorporated business as I am confused wheather you will use the tax figures or the market values

Mr A has been trading for many years and decides to incorporate his business.He values his business at £400k . His balnce sheet at incorporation is as follows:

                             NBV                             MV                


Freehold             100k                          300k               Gain   200k

 Fixed assets        50k                           40k               TWDV    £30k

Stocks                 10k                            8k      

Debtors                8k                             8k

Bank                   3k                               3k

Creditors             (14k)                        (11k)

Goodwill (Blancing figure)                      52k


Total                                               400k

He will receive 400k £1 shares in exchange

If a claim is made to use the TWDV for capital allowance purposes ,then how does it affect the balance sheet for preparing accounts for companies house?


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