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Share Capital Double Entry

Share Capital Double Entry

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Hi,

We have set up a small new company. We are now entering the transactions into an online accounting package.

What entry should I make for the share capital. I think its only £100.

Would it be debit bank, credit share capital?

Thanks a lot

David

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15th Feb 2013 07:09

Yes, if you have paid for the share capital

If you have paid for the share capital then yes, you are correct:

DR Bank

CR Share Capital

If you have not yet paid for the share capital then you would use:

DR Directors Loan Account

CR Share Capital

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By jndavs
to Dowland
15th Feb 2013 09:44

share issue

Strictly 'DR Directors Loan Account' is charging the director for the shares and treating them as paid.

'Dr Unpaid share capital' should be used if the shares are unpaid.

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15th Feb 2013 13:54

OR

Dr Cash, ie director's pocket/wallet/bum[***] bag etc

Thanks (2)
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21st Feb 2013 03:36

Actually it is a bit more complicated.

 

The company has 100 £1 shares. They are allocated as follows

Director 1  - 50 shares

Non director number 1 -  49 shares

Non director number 2 - only 1 share

 

The director shares I can debit directors loan account and credit share capital.

How do I account for the other shares which belong to non directors if the company has not received any money from them? Also the non director with 1 share is outside the UK. It would seem crazy to ask him to send £1 from abroad.

 

Thanks a lot for any help

 

 

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By 356B
to davidmjones1
14th Dec 2017 15:29

Sometimes "crazy" is the only way to do things correctly!

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By blok
21st Feb 2013 08:45

.

"other debtors"

Thanks (2)
21st Feb 2013 08:48

Uncalled & Unpaid

From my long distance memory if money has not been "called" and remains unpaid, you don't record it at all.  Look at a typical note to the accounts "Called Up Share Capital : Alotted, issued & fully paid...." 

so Dr £0 & Cr £0

OR - talk to your client.....as I say above, if the shareholder is a shareholder (ie their name is written in the register of members) and has no idea of any of this stuff, and wants to be regarded as a shareholder then the £1 is in his or her pocket, held in trust for the company, so just dr cash (and tell them not to lose it!)

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By jndavs
21st Feb 2013 15:41

Shares

As previously stated there is no need to record uncalled share capital, otherwise

Dr Directors loan £50

Dr Unpaid share capital £50

Cr Share capital £100

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30th Jul 2015 13:24

directors loan account

hi,

 

what type of an account is "directors loan account"??

Asset??

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28th Sep 2015 14:47

accounting for shares

 the unpaid for shares on any allotted will remain a liability or offset from year end  profits/dividends. this is an interesting platform to exchange practicing notes.

otherwise, the answer to Malinda is that it can either b an asset or a liability (depending on variables and bearing in mind Spakler's entries above)

Aston

 

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28th Jan 2016 09:38

New shared capital

Hi...

The situation is one company has increased their share capital from MYR1.00 to MYR80,000.00. the company has two directors and the company has a debt with the two directors, let say Director A = MYR24,000.00 & Director B MYR7,600.00. Plus, the company also has debts with creditors which is amounting to MYR48,860.00. However, The creditor is also the father of either one pengrah company.

My boss ask me to to deduct the amount of share capital since the money come from both of the director and also from the other creditor. How to do the journal entry for this transaction?...

 

I hope u can help me...Thank you in advance...

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By 356B
08th Jun 2018 13:01

A little bit out of date methinks.

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