I am one of the partners of this partnership and I have enter an agreement with my ex partner to buy the assets. The solicitor told us that I have to pay the partnership and then transfer from the partnership to my ex partner’s account. So, I have done that.
How do I log that in the system? The money came from my personal account (which nominal account should I use for this?), it was transferred to the partnership current account, then transferred to my ex partner’s account (I believe here I should use her Partner drawing’s account, is that right?).
I’m a bit confused about the question. You’re in a partnership but buying things from an ex partner who still has a partner account in your business? I’ve tried to answer as best I can.
The money you’ve put into the business could either go into your drawings account (effectively paying back some of your drawings into the partnership) or it could into the capital introduced account. It doesn’t make a massive amount of difference either way.
If money is being transferred out to an existing partner then it would normally go their drawings account. If you are buying assets from someone outside of the business then the payment would normally go to the asset account to reflect the purchase.
We have dissolved the partnership and I have founded Leal Cuisine Limited (Quickfile account: 6131481687).
I have bought the assets from the partnership. Now I am winding up the accounts for the partnership and I was wondering how to log this information in the system. What you suggested does make sense to me.