opening an company

villapb

Hi

When i open a company 50 shares for director and 5o shares for company secretary at £1 each.

Do they have to deposit £100 into company bank company. ie cr bank £100 the dr share capital £100, or am i going to deep.
What do you guys gals do please.

reader

Nah, just DR Petty cash and CR Share Capital

deanshepherd

reader wrote: »

Nah, just DR Petty cash and CR Share Capital

I would never advocate to a client that the very first transaction in their records is a lie.

Get them to put the money in the bank account or debit their Directors Loan Account.

villapb

hi dean i debited the bank and credited the share capital account, so the bank shows £100 form share issue on the new company shares.