Issue shares to shareholders

Accounting
1

Hello,

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”?

Thanks

2

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

3

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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4

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