[GNC] Can I add to Equity?

[john]

That accountant you pay can also tell you how to set up your books for the new company. You'll get much better advice from them than from this list: They're licensed to practice accounting in the UK, unlike anyone here.

That said the £1 per share is called par value and is the lowest amount the company might sell the shares for. It's usually much less than the actual price the company gets for the shares and that's what you enter in the company's books. See e.g. https://smallbusiness.chron.com/account-issuance-par-value-shares-57788.html.

Regards,
John Ralls


> On Dec 2, 2022, at 10:28 AM, Dr. David Kirkby <drkirkby at kirkbymicrowave.co.uk> wrote:
> 
> On Fri, 2 Dec 2022 at 17:52, Stan Brown <the_stan_brown at fastmail.fm <mailto:the_stan_brown at fastmail.fm>> wrote:
> 
>> 
>> On 2022-12-02 07:21, Michael or Penny Novack wrote:
>> 
>>> So my GUESS is you are asking us, what should be the other side of the
>>> transaction that enters this amount? << again, this is not really a
>>> gnucash question since would be the same question no matter how the
>>> books were kept >>
>>> 
>>> Personally, I'd probably use Imbalance as the most logical. After all,
>>> you are in effect telling us that by convention, books for a business
>>> entity in the UK start out out of balance by 1.
>> 
>> With respect, I think that's a dangerous suggestion.
>> 
> 
> I think that the safest thing is for me to actually ignore this £1. After
> all, I pay an accountant to submit the appropriate paperwork to HMRC and
> Companies House.
> He should be able to take care of that. There’s only one singe share, and
> it’s value is small.
> 
> I do not think that if my company was inspected, any inspector would be
> quizzing me about a £1 share.  They would know it is standard practice to
> start a small company with a single £1 share.
> 
> Dave
> -- 
> Dr. David Kirkby,
> Kirkby Microwave Ltd,
> drkirkby at kirkbymicrowave.co.uk <mailto:drkirkby at 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
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