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