My client prepared dormant accts to 30/04/12. She showed the shares as unpaid.
In my accts I want to pay the shares from the dir loan acct.
How do I disclose this? Would this suffice?
Share capital 2013
Allotted called up and fully paid 100
Share capital 2012
Allotted called up and unpaid 100
Replies (9)
Please login or register to join the discussion.
Yes
The disclosure required is the amounts allotted, called up, and paid up. You'll also need a RPT in the full accounts re the director's loan.
Where in the 2012 accounts was the debit that you are moving to the DLA in the 2013 year?
Co formation costs
Who paid them? You can use the costs as part of the share payment.
If all else fails you could always do what my old principal did. Tell her to write a cheque for £100 to cash, put the cheque in a drawer for the company - Hey Presto- Dr Cash Cr Share issue!!
Overdrawn loan?
The 2012 accounts showed a DR Unpaid Share Cap £100, CR Share Cap £100
Did the debit in 2012 constitute a Director/Member loan movement and consequently an overdrawn loan position - if it did then in my opinion they were paid up in 2012
Cr unpaid share capital
From your last post I assume the company is now active, if this is the case cr unpaid share capital and Dr director's loan account. As I posted earlier you can Dr formation expenses and Cr director's loan for the initial costs. Any remaining Dr balance on the Director's loan can be remedied in the current year.
Formation costs
From your last post I assume the company is now active, if this is the case cr unpaid share capital and Dr director's loan account. As I posted earlier you can Dr formation expenses and Cr director's loan for the initial costs. Any remaining Dr balance on the Director's loan can be remedied in the current year.
Formation expenses aren't a company liability - unless in respect of a subsidiary or other group entity.
However, in this case, they are a private expense and wouldn't attract Corporation tax relief - they can be put through the P&L if you want but it is of no consequence.
You can use the costs as part of the share payment.
How would this work?
Clarity
From the subsequent posting, this would appear to be a bad choice of words. The costs do not form part of the share payment as such. The amount the directors owe the company for shares is offset against the amount the company owes the directors for formation costs. Normally the latter will exceed the former, putting the director's loan in credit.You can use the costs as part of the share payment.
How would this work?