According to QF’s “Limited Company Bookkeeping - The Basics” page: http://goo.gl/qS5s8U I should record initial share capital as follows:
Cr "(3000) Ordinary Shares"
Dr “(1201) Directors Loan Account”.
Is there any way of recording when the shares were sold to multiple directors who each have a Director’s Loan Account? I would like to do away with the shared Director’s Loan Account altogether as it doesn’t exist in reality.
If they each have their own DL account you’d just split the journal or make a separate journal for each director, e.g.
- Cr (3000) Ordinary Shares £1000
- Dr (1203) Director 1 Loan £500
- Dr (1204) Director 2 Loan £500
(or whatever are the appropriate nominal codes for the DL accounts you created in the bank section).
Edit: or given you say “paid up”, you could bypass the loan accounts and journals and just tag the “money in” transactions on the bank account as “something else not on the list”, posting to 3000 (Ordinary Shares).