As part of starting up my business, it was necessary to inject some capital into the account, and also invest in certain items prior to the business being officially registered.
What I would like to know is, how do I record this?
Thanks in advance.
Hi @BSL
Are you a sole trader, partnership or a limited company? If you were a limited company, was it in return of shares?
I’m a limited company. I’m quite new to this so not sure what you mean by “in return of shares”
When you incorporate the company, you would have specified a number of shares and their value. This is normally a nominal value.
If it was more of a case of “giving” the company a sum of money, you would simply record this as a director’s loan.
This link may help. It highlights the common cases such as a director’s loan (giving money to the business) and recording share capital:
Of course, if you need further help, please let us know