Selling a business with credit loan account

Hi.I would like to know how will it work if someone wants to purchase a business (Pty) Ltd (Nursery School)and the director’s loan account is in credit.(Only 1director) (The business still owes the current director money).Will this be added to the selling price or how will it be treated?
Please advice.

This is not a question for this forum, which is about using the Manager application. Pricing of businesses for sale is not an accounting issue, just a business choice.

When you sell the business let the new owner worry about it.
:slight_smile:

From an accounting perspective when selling/buying a (Pty) Ltd business (as in transferring the ownership of the share capital) nothing within Manager’s set of accounts changes.

If the Equity section for the business shows one issued share for 1.00, then after the sale the Equity section will still only show 1.00. It just that the new owner spent xxx to acquire ownership of that share. As to the directors loan account, that is subject to the selling process.

But lets say the business (excluding the loan account) is worth 10,000 and the loan account is 2000, then the buyer could spend 8000 to acquire the share and 2000 to replace themselves as the loan account.