Question about an accrual account and business checking account?

Question

My familiy owns 50% of a business, and there is a business partner who owns the other 50%. Due to health issues the business partner is selling her half. She has decided that when she sells, she is taking the contents of the accrual account and the checking account (and possibly any other savings). This seems extremely wrong, and possible illegal to me. Can anyone tell me if this is in fact something that shouldn't happen, and what we can do to stop it? Thank you very much.

Answer 1

You should get a valuation done on the business. At least agree on what the assets are worth, then agree on the liabilities, and the net would be a rough indicator. Her share would be half that amount. If you can you should also try to measure the goodwill of the business, if there's any. A stream of regular customers might indicate the existence of goodwill. It means that without you doing anything (no new advertising, no promotions), customers will come back because of the name and quality of the goods and services. You should add that goodwill value to the net tangible assets value above to get a truer value of the business. If she doesn't agree, you might have to appoint a certified valuer.

Answer 2

First off, check to see what type of business charter was granted (i.e. a partnership, a corp., LLC . etc.). Next, is there a written agreement about dissolution or buyout terms? Now to the silly stuff, cash is an asset, so from her perspective it makes sense to want cash. However, unless you got the terms mixed up, an accrual is a liability, why would she want that, unless there is a liability to each owner or one owner(her?).
Assuming the firm has an accountant, have that person explain what can or cannot be done as they are right there. Given they will want to continue serving the business, they should be forthright.

Answer 3

curiously you're money foundation which you will remember is posting what you pay for, and what earnings you have accrual is you place up once you the two bill it or have been billed in case you look after a catalogue, you initiate with the beginning up inventory, upload the purchases via the year, and subtract the ending inventory, it particularly is your value of products interior the quantities you point out you're possibly going to maintain a catalogue, in case you do no longer thinking the earnings you point out, and the inventory you prefer to start, your p/l could be extraordinarily out of stability realistically your internet is in all probability unlikely to important, however the final 1040Es is Jan. 17, 2013, so which you may make that fee to ease any penalty that could be coming