Hello Mark,
Re: Pillsure Limited.
Myself and a fellow Director have sold and transferred some shares to a new investor. The investor has paid the funds direct into the Pillsure bank account.
How do I account for the sale of these shares in the Solar Accounts? Also, as the funds have gone direct into the company, do I account for these as an outstanding loan from both Directors?
Would appreciate your advice.
Regards
Alan Tingle
Hi Alan,
It sounds like you have sold existing shares in
the company that previously belonged to you and another director. That is, the total number of company shares outstanding has not changed. In that case I believe you should enter this as a General Transaction from the
Directors Loan account to the Cheque Account. However, please check this approach with your accountant.
