Accounting treatment for bank account opening

Accounting treatment for bank account opening

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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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By User deleted
28th Dec 2011 08:59

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be to pay for the share capital and should be credited there, the balance is credited to director's loan and can be withdrawn when you wish - as you say it is your money. 

Thanks (1)
Replying to cstwragby:
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By yunyun128
28th Dec 2011 10:10

Thanks a lot for your reply

So, is it means that upon withdrawal of the 500 pounds, the accounting entry is as follow:-

DR Director's Loan Account

CR Bank

?

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By User deleted
28th Dec 2011 10:15

Yes

That is correct

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By petersaxton
28th Dec 2011 18:28

Share capital?

Is anybody paying for the share capital and, if so, how?

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By kstan1122
11th Jan 2012 15:09

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

 

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