On Fri, 2 Dec 2022 at 20:56, David Cousens <davidcousen...@gmail.com> wrote:
> David, > > When I set up a private company in Australia many years ago, my accountant > at > the time charged me for the nominal $2 of share capital so I debited my > personal > bank balance by $2 and credited an asset account recording my > contributions to > the company which also included other setup costs (accounting , > registration, > various fees etc etc) paid initially out of my personal accounts before the > business bank account was established. I might be wrong, but I don’t think we can claim the registration cost back, but that’s a very modest fee. I believe it costs £13 at Companies House, but there are companies that offer a service of forming companies charging even less. For example, this one at £12.48 https://www.yourcompanyformations.co.uk/ I assume that they get a discounted rate from Companies House. > The point of recording the nominal share capital is, should you at some > future > time turn the company into a partnership (or even public company), that > nominal > share capital is then split with the incoming partner and its value can be > used > to determine the partners share of the equity i.e future profits. (IPO's > are of > course a lot more complicated). It is recorded at Companies House, but not currently in the GnuCash account I created. In the highly unlikely event that I form a partnership, I will just leave it to the accountant. > > The above of course is not accounting advice as jurisdictional business > legislation and accounting practice may affect the treatment and a local > accountant should be consulted for professional advice. As you see, I did ask him, but didn’t get a totally satisfactory answer. > David Cousens > Dave -- Dr. David Kirkby, Kirkby Microwave Ltd, drkir...@kirkbymicrowave.co.uk https://www.kirkbymicrowave.co.uk/ Telephone 01621-680100./ +44 1621 680100 Registered in England & Wales, company number 08914892. Registered office: Stokes Hall Lodge, Burnham Rd, Althorne, Chelmsford, Essex, CM3 6DT, United Kingdom _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
