Hello,
I started a company (GmbH) with some business partners in Germany, in which I’m investing through my LTD Company in the UK, where I live. I paid the share capital from my LTD Company funds, as well as a monthly loan. Anyone know which expense category I should use for the payment of the share capital?
Thank you!
One of the accountants on here may chime in with a definite answer but I’d say that to my mind it’s not an “expense” at all, it’s an investment that belongs on your balance sheet as an asset rather than P&L as an expense.
If in doubt you could create a new 00x0 asset code to keep it separate, and if your accountant has a better suggestion when doing your end of year accounts then you can always recode or journal it later.
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