Expert: Arthur Naman - 7/12/2009

Question
Dear sir, we are the whole owner (100%) of a company intend to sell one line of business from our existing company to another company. The issue here is that we request from the buyer to pay the proceeds (selling price) partially to us and the other part directly will be deposited in our company accounts.  why we want to do that? our company right now record an accumulated losses instead of accumulated profit and if we receive the full selling price direct in our company accounts the accumulated losses will not be setelled so no dividends could be happened from our company to us (remember that we are the only owner no other partners with us) and we don't want to withdraw any money from our company which will be recorded as a receivable in the accounts and weakening the financial position of it. our question is: from accounting and legal point of view, could we do this if all parties agree? and I need rational behind your answer to convince the other party and our auditor.

Answer
Your question is not clear. Specifically -- "buyer to pay the proceeds (selling price) partially to us and the other part directly will be deposited in our company accounts." --

There might be legal issues involved which are beyond the scope of what I am willing to discuss as I am not an attorney.

If I understand what you are telling me, the proceeds from the sale might be constructively received by the company selling the line of business even if some of the proceeds are paid to another party.

The scenario presented is not clear.

Please be specific in the question you are asking.