Transfer of cash from sole trader

[astevens]

We accumulated some cash as a sole trader and wish to transfer it to the limited company we have now formed . What is the correct way of accounting for this?

[Lord Hutton]

You should hold a board meeting and issue shares to the value of the cash, this then introduces the cash into the company as share capital. Take a look at http://www.businesslink.gov.uk/bdotg...mId=1074433293 which may help you in more detail.
Alternate is as to treat it as a "directors loan", which the company then pays back eventually. Take a look at this link: http://online.businesslink.gov.uk/bd...go.x=13&go.y=7