UK How to record the share owned by the sole director in the accounts.

[Barca]

When the limited company was formed, the sole director was issued with one share worth one pound. I think it was paid for. How should this be recorded in the accounts? Since then, the director has loaned money to the company in the form of a director's loan but the company has not issued any more shares.

 

[wave]

isnt it:

DR Bank

CR Share Capital
because its already paid.

Directors loan:

Dr. Bank
Cr. Amount due to director

because loan is form of cash and also working capital

 

[Barca]

isnt it:

DR Bank

CR Share Capital
because its already paid.

Directors loan:

Dr. Bank
Cr. Amount due to director

because loan is form of cash and also working capital

The company had no bank account at the time of formation. The director paid for the share out of their own money. How can I account for this?

 

[wave]

No bank account than perhaps you can debit Petty cash since you think it has been for.