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Hello, if you have any questions or need further clarification after reading my answer please let me know.
Please advise if the company owes any money to the director at the year end for out of pocket expenses etc..
No. The company had no other creditors or debtors at the end of the accounting period. There was some turnover, but the business activity in this first activity was fairly negligible.
Thank you for your prompt reply.
This is what I would do as a practical solution in these circumstances...
Treat the investment in one share as a payment for that share in cash and show £1 in box AC54 - cash at bank and in hand.
This is the most practical and I have done this for many of my clients in the past.
There is no need to make any notes.. basically the share was paid for in cash and reflected in the balance sheet accordingly.
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Thanks that seems helpful.
One point of clarification though, since the £1 is not actually in the company's bank account, is this ok? I can transfer it now obviously, but it wasn't in there at the end of the accounting period.
Thank you for your reply.
For that very reason, I had suggested it was a payment in cash and cash held at year end. You may transfer it to bank account or leave it as cash in hand for accounting purposes.
That absolutely makes sense actually. Your help is much appreciated.