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Thread: Capturing share capital introduced

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    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?

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    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.

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    Thank you
    Do I do this entry in the general journal?

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    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.

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    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?

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