Turning One Company into two and payroll.

HI

We have one company that has now split into two companies. Same director on both, new directors on the second company.

New ABN, New Name etc.

Some of the employees have moved over to the new company.

All leave entitlements etc are transferred accross.

I have Manually entered in their leave entitlements into the new company. Therefore they show exactly what they have in accrual from the first company.

My Question is.......How do I now clear the entitlement balances in the first company so that they show a zero balance owing?

As the entitlements were not part of the buy in price, it has been agreed that the new company will pay the entitlements as they are taken, then invoice the first company for the amounts which the first company will reimburse the second company.

A spreadsheet to keep track of this has also been set up.

Just mentioning this so it is clear that everyone involved will be receiving what is owed.

Any assistance with this would be great.

Thank you in advance

Kathy