dormant company share capital

dormant company share capital

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My client bought a dormant company last year from its previous owners for £1000. The issued share capital of the company is 1 ordinary share at £1. The company has remained dormant and we need to file the dormant accounts. I want to use the Companies House online filing and I am not sure how to treat the £1000 paid. Can anyone help please.
anon

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By AnonymousUser
24th May 2007 12:37

other debtor
If company only has one share in issue and no bank account then I'd just debit other debtors (directors loan account if shareholders are directors).

Obviously if it does have a bank account and the original owner diligently deposited £1 into it then you'd just debit bank.

Assuming the company issued no further shares then simply the one share has changed hands for £1,000 and thats nothing to do with the company as such.

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David Winch
By David Winch
24th May 2007 16:35

What's in a name?

Perhaps the company is called Fabulous Company Name Ltd, or was incorporated in 1802 so the new owner can claim his business was established over 200 years ago, or perhaps it has an advantageous tax history, or even perhaps it has a bank account with £1,000 sitting in it?

But the £1,000 payment should not feature in the company's statutory accounts if it was paid for the purchase of existing share(s) in the company.

David

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