I was hoping that someone could please advise me on member loan accounts in a closed corporation.
There's 2 members in the corporation and the CK1 states that the members have 50% shares
The loan accounts are:
Member 1 R428 171
Member 2 R273 823
Total loans R701 994
When the company assets are sold and member 2 resigns from the corporation what should happen to the loan accounts and how should the profit be shared between the members?
Letís use a profit of R 750 000 as an example