Hi

When I incorporated my company, I issued myself the nominal share of £1. It's unpaid, and there's no record on Solar yet. How do I enter it to account for this, and make my balance sheet figures tally with profit/loss?

Thanks!

Hi P_K,

I believe you should simply enter an opening balance of £1 for the Share Capital equity account. However I'm not an expert on this so please check with your accountant.

Regards,

Mark, I hope you don't mind me adding to your answer. Every entry needs a balancing entry. In this case post £1 to the share issue account as Mark says and the balancing entry is £1 to the Director's Loan account - you owe the company the £1! Off-set this as and when you pay yourself expenses or salary to make the share fully paid up.