USA Question about how to record investment received by taking on a new member into business.

[BRANDI BUFF]

We have recently accepted a 50% member into our business. I am trying to get confirmation of how I should record the initial investment they have made to become a member. We are a nonprofit. Should it just be a debit to cash and a credit to a Paid in Capital-New member name account listed for the new member?

 

[kirby]

Yes. Your suggested entry works.