Hi
I don’t understand the example for this in the KB (Limited Company Bookkeeping - The Basics)
As the director I hold 100 shares which I paid for with my personal funds by depositing £50 to the opening of our current account and business savings account.
So should I tag the two £50 bank deposits to the DLA but then I’m stuck with what I should do next to record something to Ordinary Shares account?
Does adding details in ‘Account Settings’ > ‘Management Information’ > ‘Click here to add a new officer or shareholder/partner’ also make the necessary postings to the accounts?
KR
Justin
Hi @justin
Have you put the money into your business bank account or have you just declared the shares at the point of incorporation?
No, this wouldn’t affect anything. This is more for reference for things like year end account orders or for your accountant (if you use one through linked to your QuickFile account).
Hi @QFMathew
It was my own personal funds (£100) which I used to open our bank accounts so this also equated to my purchase of 100 ordinary shares.
KR
Justin
Hi @justin
I believe something similar to the below would be acceptable, but I would double check with an accountant just to be sure (I’m not one)
Just had a look at this but it doesn’t seem right to me but I’m not an accountant either so will see if anyone else here might be able to offer any suggestions…
Trying the above example ends up with an extra £50 added to the Current Account. I think the initial deposit to the Current Account is akin to me loaning the company that money so the first step seems as though the Current Account credit should be tagged to the DLA so that the liability to repay the director is recorded. Usually the DLA would remain I guess in debit until that occurs but in this case we’ve kind of been paid by way of a share certificate so we could credit the DLA from Ord. Shares perhaps? So doesn’t that shift the liability from the DLA to the Ord. Shares nominal account?
KR
Justin
