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Directors loan account: Goodwill?

Question asked by Rob Gregory 6 years ago

My Limited company is purchasing goodwill from myself. How do I represent this in Clearbooks?

I am assuming this should be shown in a Directors Loan account however because I haven't physically lent the business money I am stuck on how this can be done. Any advice more than welcome!

2 Replies

Hi Rob

Just to add a bit to Abdul's post, the goodwill account should be set up in the "Intangible Assets" area (normal code starts 7004).

Also, you could also use (or set up) a Director's loan account under the banking section, all you'd then have to do would be to make a payment out of that account, for the goodwill, to the above account code. This would record the Goodwill asset and create a debt due to you.

Hope that helps

Hi Rob,

To do this the first thing you will need to create a new account code for this type of transaction, There will be a link below. Once you have created the relevant account codes, you can then create a Journal to post this type of transaction. However you will need to ask your accountant for the different Debit and Credit values you will need to enter and the relevant account codes as we cannot provide information such as that.

http://www.clearbooks.co.uk/support/guides/codes/adding-new-account-codes/

Hope this has helped!

Thanks,

Hi Rob

Just to add a bit to Abdul's post, the goodwill account should be set up in the "Intangible Assets" area (normal code starts 7004).

Also, you could also use (or set up) a Director's loan account under the banking section, all you'd then have to do would be to make a payment out of that account, for the goodwill, to the above account code. This would record the Goodwill asset and create a debt due to you.

Hope that helps

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