Funds received in advance of share issue

Funds received in advance of share issue

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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

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By User deleted
06th May 2015 13:28

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.

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By johngroganjga
06th May 2015 13:37

It's a creditor.

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Replying to BayTree:
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By Jasper21
06th May 2015 13:39

Thanks John, CR: accrued income or reserve? 

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Replying to fawltybasil2575:
Stepurhan
By stepurhan
06th May 2015 14:06

Think about it

Jasper21 wrote:
Thanks John, CR: accrued income or reserve?
Neither of these are correct.

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?

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By User deleted
06th May 2015 13:43

This forum sometimes can be a source of entertainment and therefore, a stress-buster!!

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