transfert of share

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jiji
jiji Registered Posts: 3 New contributor 🐸
in General discussion
Hello everybody

I am a student in aat level 2 but I am in front of a problem I can't solve as I have not really the skills for this

1) 4 personns have created a limited company. On the memorandum the capital of the company should be 10 000 divided on 10 000 share= 1£ each
2) the 4 personn have only gave 500 pounds each to the bank a/c total = 2000
3) after several month 1063.40 has been spent on revenue expenditure and still no income from sale or no more money for the capital filled in the bank account
4) 2 of the shareholders want to live and have their investment back so they are going to sell it

question: From which amount 10 0000 or 2000-1063.40should we calculate to sell the share?

Thank you very much for your help

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  • mowzer
    mowzer Registered Posts: 67 Regular contributor ⭐
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    If i understand you correctly the four shareholders are all directors.
    Therefore, the sale/ transfer of shares is for their nominal value and the £500, should they receive it, is their directors loans being repaid to them.

    In terms of the actual accounts, the double entry of the shares being sold should be credited to the same place as the share issue were initially debited to (bank, directors loan, cash etc).

    Have 10,000 shares actually been issued or is this just the authorised share capital? Only shares which have been issued (using a form 88-2) can be sold.
  • jiji
    jiji Registered Posts: 3 New contributor 🐸
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    the 10 000 was notified on the memorandum of association as 10 000 shares at £1 each.
    The four share holders have only paid £500 each = 2 000 total and would have paid the rest later on the year .
    For the transfert do I have to base my calculation on the amount of 2000 - expenses?

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