Hi guys, I'm preparing the year end 31.03.2015 accounts for a Ltd Co client. The had in principle agreed investment from a 3rd party angel investor before 31.03.2015 @ £100k. The funds were received, but the shares have still not been issued as the circumstances of the company/investor have improved and they are negotiating a larger investment.
How do I report this initial £100k received in the statutory accounts?
Thanks in advance
Replies (5)
Please login or register to join the discussion.
If it was in response to a larger issue you could have credited 'share subscription account' which would be transferred to 'share capital' account on allotment. In this case I think you should credit that person's account.
Think about it
Neither of these are correct. Thanks John, CR: accrued income or reserve?
I presume you are not going to classify the share issue as turnover, so why would it be accrued income.
As for the second, what are reserves not?