Having a mental moment with Dr and Cr.
My client company issued shares direct to two of it's employees. 5% each. I'm looking at income tax on shares for free.
One of the employees is the son director/shareholder so probably no IT charge as family relationship.
The other employee is now willing to pay the (low) market value for these shares, so as to avoid any IT charge. The 88(2) said £1 per share was paid, not MV. If the employee paid £10 per share now - 2 years later - what do I credit. This cash can only be paid dierct to the company (ie it wasn't a gift from the othe individual shareholders.
The Dr cash I can do!
What do i Cr? Share Premium, seems the correct thing, had it been done properly in the first place. Can this be done 2 years later. Can Share premium suddenly appear in the 2012 accounts without an increase in the issued?