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


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If he is the sole proprietor then it becomes equity, also called as additional paid in capital when lending. But in this case, yes a director can give the money and it can be accounted for. A separate account must be created for this for example "Directors loan account" or "additional paid in capital" and must be disclosed very clearly that the money is invested for working capital and the profit arising from it could be treated as retained profits until the next year without a liability to payback. In SOFP current asset side, disclose it as "the company is not 'in credit' to pay the director his money back". Correct me of I am wrong.
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.
 
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Very basic question, I know.
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?
 

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