BSL
15 September 2017 14:10
1
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?
BSL
15 September 2017 16:05
3
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:
QuickFile - Simple, intuitive cloud accounting software, find out more here
Introduction
Bookkeeping for a Limited Company is in many ways simpler than that of a sole trader, largely due to there being a clear separation between the owner and the company finances. A Limited Company is a separate legal entity, it has its own income, expenditure, assets and liabilities distinct to that of its owners. When the owner (shareholder) wishes to draw a salary from the company it can be done in a numb…
Of course, if you need further help, please let us know