Accounting for Share Capital

[George]

Lord Hutton,
Thanks for your efforts. I am starting a new thread on this as there is a falut that stops me from replying to your own thread.

Originally Posted by Lord Hutton

There are two places in the Company Sec sheet to enter share info: "Board Meeting" where you enter the value of shares issues in the year, and "Registry Of members" - shows in the actual holdings by person. You need to do both. Should flow through to the financialaccounts.xls.

Well, we seem to be starting to get somewhere at last.
This is part of what I was looking for in my previous postings.
The other part is still missing: I have done as you said in BOTH parts of the companysecretary book and NOT entered the sharevalue in my previous year (as this is the first year) so now there is an imbalance on my 'trialbalance' sheet to the same value because the money for the shares was paid into my current account but there is no Codeletter to affiliate them to.
I still don't know how to sort this, and it needs to be sorted or my accountant may feel obliged to charge me a lot of money to find out why (the very thing I bought this package to avoid).

[Otto64]

Tried to solve the same problem - both the accountant + share capital ;o) Finally put in the share capital in the E33 of the openaccounts sheet and this seems to work.

[George]

Thanks Otto,
I tried that but my current account still shows an imbalance by the same amount.

[antonycc]

Hello,

I've had a couple of questions about share capital recently, here's a guide on how to account for in that keeps your balance sheet balancing:

Here's how to set up and add Share Capital raised through shares issued.

First decide how the shares will be arranged

Determine

Shares Issued: Total number of shares issued
Share Capital: Total amount of share capital raised
Subscriber Details: Number of shares issued to each member

The make formula changes
(you can skip these if you've gone for the default 2 shares at £1 each.)

Financialaccounts > PubBalSht > Cell C36, Change formula to:
(If using, DIY Excel 2007)

="Called up share capital "&[Companysecretary.xlsx]RegisterofMembers!$G$1/[Companysecretary.xlsx]RegisterofMembers!$F$1&" ordinary shares of £"&

[Companysecretary.xlsx]RegisterofMembers!$F$1&" each"
(If using, DIY Excel 2003)

="Called up share capital "&[Companysecretary.xls]RegisterofMembers!$G$1/[Companysecretary.xls]RegisterofMembers!$F$1&" ordinary shares of £"&[Companysecretary.xls]RegisterofMembers!$F$1&" each"

The add the values

Unprotect Financialaccounts > TrailBalance
In the Trail Balance's Monthly Accrual column for the relevant month (column M, X etc...)

Enter the Share Capital as a negative directly in row 42 (Share Capital)
Enter the Share Capital as a positive directly in row 39 (Director's Loan)

In Companysecretary > RegisterOfMembers add subscriber details
Check the value in Financialaccounts > PubBalSht > Cell C36 matches Cell F36
Clear the Directors Loan by entering the share capital in Currentaccount.xls as a receipt from Directors (code "DL")

The company should now have the share capital added evenly to the Shareholders funds, Net Asset valuation and Cash At Bank

The package comes with a pre-populated structure of 2 shares for £1 each. You can use this by just entering the TrialBalance changes, add to it as above, or replace the default shares to reflect the details in your company formation documents.

Thanks,

Antony.

[Guy West]

Anthony, Thanks for this. I have been puzzling how to enter Share Capital for my newly created company and was going to post a question. However, on searching, I found that you had answered it before I had even posted the question.
Thank you! Guy West

[Innovation100]

I have purchased the DIY Limited Company Accounting Package.

When the company was set up, it had 100 shares of which each of the two director took 1 share at £1 each, with 98 shares left in the company Subsequently at the various initial stages of the company, the remaining shares in the company were bought for more than £1 per share to put cash into the business for cash flow reasons. How can buying shares of the company and the capital put into the business, be incorporated into the spreadsheet?

Any assistance in this matter would be appreciated.

[antonycc]

Hello,

The easiest mechanism you can use to introduce cash and take it out again is a Director's loan.

Share capital is more complex and there is some detail on the way to add this in DIY Accounting here: http://forums.teneric.co.uk/diy-acco...tal-20553.html

Thanks,

Antony.

[Prospero]

Did anyone ever get anywhere with this one? I have exactly the same problem - 2 ordinary shares issued, paid £2 into my bank current account, don't know how to make the entries to balance this.

[antonycc]

I've merged this thread with one that goes into some detail about accounting different levels of share capital.

[Al1234]

I have read your earlier post about adding share capital evenly to the Shareholders funds, Net Asset valuation and Cash At Bank.
Do your changes need to be done by everyone using the package or just those issuing extra shares of an established company?

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.
This now appears as £1000 in YearEndAccounting of CashAccount EH25 and -£1000 in ShareCapital EH42. I don't understand the CashAccount entry.

Could you give an easy explanation of how share capital should appear in the accounts?
Thanks
Al