• Registered: 08/27/2009
  • Posts: 6

Topic: Initial Capital

Hi, May I know how can I set up an initial capital for the company? My company has 3 shareholders. Each shareholder has put in equal amount of initial investment into the company. How shall I record that down?

Thank you very much for your help. Great software, thanks.

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Initial Capital

You should have a Liability (Equity) account called Shared Capital or something like that. Credit the 3 shareholders amount here and debit either bank account,inventory account,Furnishure or whatever assets you have 'converted' the shared capital into. Most often into a bank account.

/Joe

  • Registered: 08/27/2009
  • Posts: 6

Re: Initial Capital

Hi Joe. Really thank you very much for your help. Really appreciate that!