sagelist said:
[2] I would be very grateful if you could suggest a textbook that would
cover the bases so I don't have to trouble you so much. All the texts
I've come across are like Frank Wood's Business Accounts Vol 2; they
seem to restrict themselves to introducing the differences between
entries for a sole trader and those for a public rather than a private
limited company. A textbook detailing the differences between the
entries for a sole trader and a private limited company is really what
I imagine I need (or are the differences so sparse that a text would be
overkill) (or so vast no text would suffice)?
The differences will (ordinarily) be:
OUT - [Balance Sheet]: Capital Introduced, Drawings
IN - [Balance Sheet]: Share Capital, Directors's Loan A/C (also called
Current A/C), Dividends Payable
- [Profit & Loss Account]: Directors Remuneration (Salary), Dividends
Assuming there is no parallel trading the Assets and Liabilities of the
Sole Trader business disappear down a black hole on the last day of
trading, reappearing out of an equal and opposite black hole in the Ltd
Company on its first day.
As the other have hinted, unless you are confident with this it would be
a good idea to pay for professional advice.
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