Shares: Called-up & unpaid, or not called (again).

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Hi All,

Have hunted around FRS 102, and, despite s.4.12(ii) regarding disclosure, I am still uncertain regarding entries for, for example:

* £1,000 Share Capital - not called up.  (Obv. not paid if un-called, so should this simply be a note item, with no SFP entry?)

* £1,000 Share Capital - called-up but unpaid.  (No related cash received by the Company, so CR Equity/Share Cap,  DR ...??)

In the case of the latter, many people post the DR to DLA.  However, my query with that treatment (in the case of a Director-Owner) is that the Equity transaction relates to the Director-Owner *in their capacity as a Shareholder*, not as a Director.  So, DR to the DLA seems incorrect.  Perhaps to Other Debtors, then, with a note to enhance the quality of the information conveyed by the Fin. Stmts...?

Lastly, how (if at all) does this change under FRS 105.  I expect the restrictiveness of the Standard means that no extra notes can be entered.

FYI - I use Taxfiler.  Great bit of software, but I've just realised that it only caters for fully paid shares - at the moment.  Thier support team will be bringing this up with developers asap.

Many thanks in advance...

Replies (3)

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By Philosophic1
26th Oct 2018 17:16

Follow-up... I've just seen in FRS 105 that the prescribed formats have 'Called-up share capital not paid' under Assets, so all good on that one.

Also, when using the FRS 105 format on Taxfiler, it *does* have a box in the TB for Share Capital not paid! (I spent ages hunting around - knowing that I saw it somewhere - and after posting this question, it hits me in the face; like "I was here all along, and you missed me"!)

Again, on Taxfiler, under the FRS 102 format, the note for Share Capital allows customised line descriptions to be added, so one can enter things like 'Share Capital not paid' and technically comply.

Would still be good to hear from the forum about the entries.

Thanks again.

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ALISK
By atleastisoundknowledgable...
27th Oct 2018 08:32

TaxCalc has a debtor code for ‘Share Capital not paid’, but I only use it for non-directors.

Directors share capital to the DLA

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Replying to atleastisoundknowledgable...:
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By Philosophic1
29th Oct 2018 14:48

Thanks very much for taking the time to respond.

I won't post the debit to DLA because that particular element is not extraction of profit / value from the Company.

Thanks again!

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