we are about to prepare our company accounts. it says that the aggregate nominal value is 500; and amount paid per share - 0 ; amount unpaid per share - 0. My question is that can we put as 500 share capital at the balance sheet in the share holders fund? Thanks
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You'll get an answer if you explain the question
Amount paid per share £0
Amount unpaid per share £0
Well, which one is it, because it can't be both. And what do you mean by "it" when you say "it says"?
If you're having difficulty with accounts, engage an accountant
Debtor
If you have £500 of shares and nothing paiid up you have a debtor of £500. The amount unpaid per share will be £1.
Who says they're unpaid, though?
The zeros on the Annual Return should be ignored. So the shares could be:
Fully paid (and cash fully paid)
Fully paid (cash outstanding)
Partly paid (cash outstanding or not)
Nil paid
Until we know what they are, we can't advise on the accounting
As I said earlier
You haven't given enough information - and if you're confused, engage an accountant
Simple question
How much have the shareholders - probably, the original subscribers who formed the company and said they would subscribe £500 - actually paid into the company for their shares?
Tell us that and you may get an answer to your question, but you really do need to consult an accountant.
The annual return is not the place to look for records of receipts and payments of money. The place to look is in the company's cash book. Does the cash book record any receipts of money from the shareholders in return for the shares issued to them? If so, how much?
Then you already have the answer, as provided by @scalloway above. Would be wise before proceeding to double-check that the shareholders agree that they remain indebted to the company for the issue price of their shares.
But ...
... we still don't know if the shares were issued as nil paid, or fully paid but with the cash still outstanding.
My money would be on the latter, but please, please, go and speak to an accountant. This will be my last post on the subject because I'm fed up trying to tease out the relevant facts.