Journal entry for unpaid share capital - Director

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Hi,

I am preparing accounts and would like to know if my journal entries are correct for the unpaid share capital by the director.

Dr DLA

Cr called up share capital unpaid.

 

Any help will be greatly appreciated.

Parmar

 

Replies (8)

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By Duggimon
25th Jul 2019 14:44

If you debit the DLA with the value of the shares then they're paid, not unpaid.

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By March19
25th Jul 2019 14:52

Hi,

Thank you for your reply. So what would be my entries? Fist year it has not been paid but when I prepare my next accounts I will make sure that it will be paid.

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By March19
25th Jul 2019 15:20

Okay, so my new entries are,

Dr called up share capital not paid
Cr Issue of New Equity Share Capital at Par

and next year once the payment is made,

Dr Bank
Cr called up share capital not paid

Please advise if these entries are correct

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By pawncob
25th Jul 2019 16:00

It'll do.

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By March19
25th Jul 2019 16:03

Thank you

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Out of my mind
By runningmate
25th Jul 2019 16:01

I think King Lear has the answer, "Nothing comes of nothing".
If nothing has happened there are no journal entries required!

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By March19
25th Jul 2019 16:04

Hi

Sorry I did not understand your reply. The shares were unpaid in the first year and will be paid the next year

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By David Ho
06th Oct 2020 10:23

Hi,

I was reading your website to learn about double entry and have a question and see if you could help me understand the logic better. The scenario goes like that:
1. 2 shareholders, total registered share capital is $210k. Shareholder A takes up 70k and shareholder B takes up $140k.
2. Due to unforeseen circumstances, both of them cannot fulfil to put the required cash into bank account. In the process of incorporating the company, there are expenses incurred by the respective shareholder (from their own pocket). Shareholder A fork out $6000 while Shareholder B fork out $3000.

Question:
1. How should it be reflected in double entry for addressing paid up share capital and unpaid share capital for the respective shareholders?
2. For future expenses / capital that the shareholder is to fork out, how should it be addressed in double entry?

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