kynethjane-kjabi
Level 1
‎April 13, 2024 03:15 AM

Whats the workaround for the tracking per shareholder's balances that are supposed to presented as paid-up capital cos its in Articles but in actual no cash deposited

Whatever the written amount in the Articles of Incorporation of SEC as Paid-Up Capital. Its required to be presented for external reporting purpose following the IFRS and IAS as Share Capital. But my problem is there's no actual cash deposited that is the same with the Paid-Up Capital in Articles. How do I track this now? Each shareholder pays for expenses related to the corp and its considered to add up to their capital. 

How do i actually track that the paid up capital is now actually paid up because of the cash paid by a shareholder for the corp. And after its been actually fully paid-up. How do i track the additional capital that will be add subscribed and paid up through their additional expenses paid in behalf of the corp.

Thank you
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RogelioL
Moderator
Moderator
‎April 13, 2024 04:05 AM

Banking

Let's ensure to track the paid-up capital and shareholder balances in QuickBooks Online, Kyneth.

 

Based on the information you've provided, we'll need to make a Journal Entry to offset the cost of sales and expenses made within the company. 

 

You can check out these articles for reference on how to record it: 

 

Please note that accurate record-keeping is essential for compliance with external reporting standards (IFRS and IAS). For further assistance, I suggest contacting your accountant to record these accurately. 

 

Feel free to ask if you have any further questions about tracking the additional capital or any QuickBooks-related concerns. Keep safe.

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kynethjane-kjabi
Level 1
‎April 13, 2024 05:24 AM

Banking

The problem is. The cash is not deposited to bank. Its directly paid to the bills of company from the shareholder’s personal money. The personal is supposed to be the paid-up capital. 

they didnt actually deposited the paid up capital reflected on the articles of inc.

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ChristineJoieR
QuickBooks Team
QuickBooks Team
‎April 13, 2024 06:42 AM

Banking

Hello there, kynethjane.

 

To properly account for reimbursements to the company owner who made payments on behalf of the business, the first step involves establishing a Current Liability account to monitor the outstanding amount owed to the owner for covering expenses on behalf of the company as mentioned above by my colleague.

 

Here's how:

 

  1. Select the Gear icon, then Chart of Accounts and New.
  2. From the Account Type dropdown, choose Other current liabilities.
  3. From the Detail Type dropdown, pick Current Liabilities.
  4. In the Name field, type a relevant name such as "Payable to owner".
  5. Select Save and Close.

 

Next, create an expense to record this transaction.

 

Follow the steps below:

 

  1. Choose + New. Select Expense.
  2. Select the Payee.
  3. From the Category dropdown, pick the account Payable to the owner.
  4. In the Amount field, enter the total purchase amount as a negative figure.
  5. Note: When done correctly, the amount at the top right should read CA $0, as no cash has left the business at this point.
  6. Prefer the Save and Close.

 

After that, utilize the transfer to, move funds.

 

See this:

 

  1. Select + New. Select Transfer.
  2. From the Transfer Funds dropdown, select the name of the bank account used to pay the owner.
  3. From the Transfer Funds dropdown, select the account Payable to the owner.
  4. From the Currency dropdown, if required, change the currency in which it was paid.
  5. In the Transfer Amount field, enter the amount reimbursed.
  6. Select Save and Close.

 

However, I suggest reaching out to your accountant to make sure everything is recorded properly within QBO. It also helps when you need to categorize transactions. 

 

Please know that we are still here to guide you along the way. Notify us below. 

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