Recording the purchase of Shares

Hi

I am looking to purchase shares, I would I record this purchase?

Thank you

Jago

You can record shares using a journal, as described in the knowledge base. You would credit “Ordinary shares” (3000) and debit the bank account (1200) if you’re actually handing over money to the company for the shares, or director’s loan if you just want to record the capital without handing over the cash at this stage.

Sorry I wasnt clear. I am looking at purchasing shares in a different company. These share will then become an asset of my business.

For this I would probably create a new dedicated nominal code under the assets and liabilities section, and a normal purchase invoice for the appropriate amount posting to this nominal. That way the shares in company X will be itemised specifically on your balance sheet.

You can always recode or journal this later if your accountant has a better idea.

1 Like

This topic was automatically closed after 7 days. New replies are no longer allowed.