Could anyone help me with this.
Last year I opened Ltd company and the inital share capital was 100 share £1 each = £100 - share capital
I didn’t actually paid it into the company bank account in the first accounting year from my personal account.
Silly I know.
The company is not dormant it did made a profit during it’s first year.
How should I account for that now?
Should I record an initial share capital of £100 in the beginning of the companys 1st accounting year.
So that it would be:
Dr Director a/c
Cr Share capital a/c
But because the actual bank transfer never happened,
In the balance sheet £100 will be in the Capital and Reserves (Ordinary Shares) and also £100 will be in Current Assets (Director’s Loan Account)
Is that correct.
I suppose I need to transfer this £100 in the second accounting year now right?
Would much appreciate your help.