HI,
I just start up my Limited Liability company and would like to open my company current bank account for 500 Pounds.
what is the accounting treatment for this transaction?
Can i withdraw the 500 Pounds immediately after the current account opening as this is from my own money ?
Thanks.
Replies (5)
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Yes, depends
Ideally, some of the money will be to pay for the share capital and should be credited there, the balance is credited to director's loan and can be withdrawn when you wish - as you say it is your money.
Well the share capital can be set at a nominal value i.e. £1 or £10.
The accounting entry could be
Dr. Other Debtor or Director Loan
Cr. Share Capital