Called up share capital

[Jimpelican]

If a ltd company is formed with 100 shares @£1 each (paid up).

And during the year, the owner puts a van into the company valued at £800.
The van depreciates during the year by £200, net book value £600.

Assuming an 8k turnover with a company profit of zero after wages and expenses.
What would the called up share capital figure be on the companies house return?

Im thinking the answer is £700. (£100 share value at start plus £600 nbv of van, assuming no other assets or transactions).

Is this right?

And if it is, does this mean that the share value is now 700 shares @ £1.

By putting the van into the business, I understand this will increase owners equity (or capital), but I cannot understand the effect on the original shares.

Have the shares increased from 100 to 700?
Or has the value of the shares increased to £7 per share?

Or is there another explanation? and there is, what is written on the balance sheet?

Thank you

 

[Truemanbrown]

If a ltd company is formed with 100 shares @£1 each (paid up).

And during the year, the owner puts a van into the company valued at £800.
The van depreciates during the year by £200, net book value £600.

Assuming an 8k turnover with a company profit of zero after wages and expenses.
What would the called up share capital figure be on the companies house return?

Im thinking the answer is £700. (£100 share value at start plus £600 nbv of van, assuming no other assets or transactions).

Is this right?

And if it is, does this mean that the share value is now 700 shares @ £1.

By putting the van into the business, I understand this will increase owners equity (or capital), but I cannot understand the effect on the original shares.

Have the shares increased from 100 to 700?
Or has the value of the shares increased to £7 per share?

Or is there another explanation? and there is, what is written on the balance sheet?

Thank you

The share capital stays at £100. I assume that you have not issued any more shares as settlement by the company for the van.

Instead, the van has been bought by the company and there is a liability of £800 now due to the director.

Therefore, the journal that should be:-

Dr Fixed Assets - Motor Vehicles----------------£800
Cr Creditors: Due Within One Year - Director's Loan--------------------£800