Results 1 to 5 of 5

Thread: Capturing share capital introduced

  1. #1
    New Member
    Join Date
    Nov 2018
    Location
    western cape
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Capturing share capital introduced

    Hi,

    Please advise, a new shareholder wants me to raise an invoice for the amount he is going to put into the company. Do I select the GL code/shareholders on invoice and if so when I do cash book do I allocate it to GL/shareholders account, because then his customer acc will still show this balance as outstanding?

  2. #2
    Silver Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    356
    Thanks
    22
    Thanked 93 Times in 82 Posts
    You should not raise an invoice. Invoices are for sales of merchandise. The entry is simple, Debit bank (with the received amount) credit share capital.

  3. #3
    New Member
    Join Date
    Nov 2018
    Location
    western cape
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Thank you
    Do I do this entry in the general journal?

  4. #4
    Silver Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    356
    Thanks
    22
    Thanked 93 Times in 82 Posts
    Hi Wendyann

    I would do it from the cashbook. The shareholder deposits into the bank, and the other leg is the share capital.

    If he is buying shares from an existing shareholder, then it's another matter entirely.

  5. #5
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    284
    Thanks
    52
    Thanked 39 Times in 35 Posts
    Just to be clear: the amount the shareholder is paying in, is this what he is paying to buy new share capital, is he paying the previous shareholder, or is it a shareholders loan and does he expect it to be paid back?

Similar Threads

  1. [Question] Owners Equity Account vs Share Capital
    By Aly in forum Accounting Forum
    Replies: 4
    Last Post: 01-Jan-17, 09:03 PM
  2. Inventory Capturing - Help Please!!
    By adam001 in forum Accounting Forum
    Replies: 3
    Last Post: 12-Aug-16, 06:42 AM
  3. Replies: 2
    Last Post: 14-Jul-15, 08:11 AM
  4. Conversion of Loan to Share Capital
    By SSS100 in forum Business Finance Forum
    Replies: 8
    Last Post: 12-Apr-12, 12:09 PM
  5. New tax-ruling system introduced.
    By Dave A in forum Tax Forum
    Replies: 0
    Last Post: 02-Oct-06, 07:13 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •