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”?