CAN A DIRECTOR OF A LIMITED COMPANY GIVE (NOT LEND) THEIR OWN MONEY TO THE COMPANY?

UK Discussion in 'General Accountancy Discussion' started by Barca, Apr 16, 2018.

  1. Barca

    Barca

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    Very basic question, I know.
     
    Barca, Apr 16, 2018
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  2. Barca

    Barca

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    I think I may have mis-phrased the question. I am talking about if someone opens a limited company of which they are the sole director, and then the sole director invests cash or equipment in the company.
     
    Barca, Apr 17, 2018
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  3. Barca

    Barca

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    I have mis-phrased the question. I am talking about if someone opens a limited company and is the sole director, and then wants to invest cash or equipment in the company i.e. not loan it to the company. Suppose the sole director invests 5000 in the company. Then the journal entry would be debit cash 5000, credit capital 5000. When the company was opened, there was one share in it worth 1 pound, owned by the sole director. Is this still the case after the sole director has invested 5000 in the company?
     
    Barca, Apr 17, 2018
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