Issue shares to shareholders


For a limited company with two shareholders (directors) with 1 ordinary share each (£1/share), the company is to issue more shares to each directors.
The company issues 69 shares for one and 29 for the other at £1/share. No actual money has been spent/moved. -> This is only to shift the percentage of ownership.

How do I account for this? Does actual money need to be spent or just add it to the directors accounts?

From what I read I should:
Dr Director_1_name a/c 69
Cr Share capital a/c 69
Dr Director_2_name a/c 29
Cr Share capital a/c 29

Is that correct? Will they be counted as “unpaid shares”?


You may also want to try posting this on AccountingWeb. We’ll leave it open here if anyone else wants to chime in.

Hi Pivic,
If you used the Standard Model Articles for Ltd Companies, part 3 states that all shares are to be fully paid up.
So just journal Credit the £98 to N/C 3000 for ordinary shares
and Dedit the share split amounts to Director 1 and 2 loan accounts

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