I work as bookkeeper for business woman who has two companies. She set up two to three years ago with one company, as a consultant in an area of IT, from this grew a demand to supply hardware. Approx six months ago a separate company was formed to be responsible for the sale of hardware and the original company would continue trading, responsible for the consultancy work.
The goods in the original company had to sold at cost to the new one. These items represent the stock of the new company so should they be coded as 1001 at purchase or 5000 ? We have Sage Line 50
The items should be coded as purchases. If the items are still in stock at the year end they would be carried forward as closing stock and brought forward as opening stock next year.
