UK Transfer of assets from one company to another

[anon7985]

Hi,
Please can you tell me how to account for the following scenario:
Companies A and B have the same shareholder, an individual. Company A is registered in Scotland, where the shareholder used to live. When the shareholder moved to England, he set up Company B in England, which he now trades through. The shareholder would like to transfer Company A's assets to Company B and close down Company A. How can he account for this?
Many thanks.

 

[Mariz]

Hi anon! In my opinion, have the Company A record their post closing trial balance, so permanent accounts remain. Sell it to Company B using company B's asset cash or by borrowing from the bank. Since a business is an entity, even though the shareholder is one, shareholder's accounts for each business must be separate.