Client debt transfer to new company

Accounting
1

Hi all, wondering if you can help.

I’ve recently incorporated from a sole trader into a limited company. I have a number of clients who were invoiced under the sole trader accounts, but have now paid into the new company bank account.

I have already completed a final VAT return for the sole trader and the VAT account has been transferred to the new company.

I’m not too sure then how I should transfer the client’s debt into the company account so as to reflect payments made and ensure the next VAT return properly shows this as well. I am using the cash accounting method for VAT by the way.

Any suggestions are welcome.

Thank you

Carl

2

Sole trader and ltd company are two different businesses, one can get to continue under same vat reg number but need to keep financial record separate, P&L items like revenue from sole trader cannot be accounted for in ltd company, debtors from sole traders are not debtors of company. Its best to account for under sole trader and finalise things there. If you are on cash basis for vat there must be transition period to use same vat number to file vat return for both businesses