>> Do your changes need to be done by everyone using the package or just those issuing extra shares of an established company?
The formula changes are just for those who want to tidy up the balance sheet. When you file online you'll be entering the raw data for numbers of share holders and total share capital so you can skip this bit.
The Entries in the Trial Balance are for the first time you set up the share capital. Most small companies don't do a lot of raising funds through share capital generally most of our customers would fund an expansion with a directors loan or a business loan.
>> I have a company in its first year with £1000 paid in by cheque at creation with the intention that this would be accounted as 1000 x £1 shares.
>> I've entered 1000 into E6 & E8 CompSec | BoardMeeting and updated the Reg of members.
It's just the Register of Members sheet you'd complete for the formation of the company, clear out the Board Meeting sheet until your board meeting at year end.
>> This now appears as £1000 in YearEndAccounting of CashAccount EH25 and -£1000 in ShareCapital EH42. I don't understand the CashAccount entry.
The trial balance pulls an entry directly from the Board Meeting sheet and this appears as Cash At Hand. You'd use the Board Meeting sheet if at the end of the year more share capital was injected.
>> Could you give an easy explanation of how share capital should appear in the accounts?
First we use one of the bank sheets to receive the funds. - There isn't a code for share capital so I suggest you enter it as a directors loan.
Currentaccount.xlsx > [Month] > E6: DL
Currentaccount.xlsx > [Month] > F6: 1000
Once the funds are in we manipulate the trial balance to switch the funds from a directors loan to share capital.
Unprotect Financialaccounts.xlsx > Trial Balance
Financialaccounts.xlsx > Trial Balance > M39: 1000
Financialaccounts.xlsx > Trial Balance > M42: -1000
What you've just done is:
- Processed a cheque as a Director's Loan received
- Paid off the Directors Loan (credit 1000)
- Added a liability to the shareholders (debit 1000)