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Post Info TOPIC: Opening Balance Journal - Share Capital


Veteran Member

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Opening Balance Journal - Share Capital


Hi,

Please forgive me if this has already been asked (I have looked but couldn't see anything!).

New limited company with one director who owns all 100 shares at 0.10p = £10

What should the opening journal be:

Cr Share Capital £10

Dr ?

From what I have seen online a lot of people are suggesting you debit petty cash if the value is up to £100 or the Directors Loan Account.

Thanks in advance

Corry



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Senior Member

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I would be reluctant to debit petty cash. Either get the owner to deposit the £10 into the company bank or debit the DLA.

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Matthew



Master Book-keeper

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Hi Corry
I agree totally with Matt, assuming its been classed as fully paid.

I was intruiged by the use petty cash comment and I think I found where you saw that - ignore that, they do quite often provide some facetious comments that lot, bit like the suggestion to almost turn a director upside down so the cash falls out of his pockets! Although one or two do use it if indeed the client absolutely has no petty cash use. Seems pointless to me!

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Joanne  

 

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

 



Veteran Member

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Posts: 64
Date:

Many thanks both,

I debited the DLA as no monies have been paid.

Corry

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