Capital paid up

Hello Tut,

Where do I enter for capital not fully paid by partners. Meaning partners still owing to company whereby it should appear in the Current Asset column as short term loan/dept.

Thank You

You have described two different situations. Capital not yet paid in is not represented by any accounting transaction. This situation will be obvious when capital contribution subaccounts of various partners are not as agreed. In such a situation, there is no asset.

Partners taking loans from the company is totally different. These can be recorded in a loan asset account. Or, they may just be recorded in the partner’s Drawings subaccount. This really is not a question about Manager, but about how your accountant recommends handling the situation.

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Via a Journal Entry for the total capital to be paid per partner.
Debit - Unpaid Capital
Credit - Partners Capital

Then when the partner makes a payment, put the receipt to the Unpaid Capital.

It can be.
If Partners have a “legal” obligation to pay a capital sum, say 10,000, but have only paid 4,000 then is quite appropriate to show in the accounts that the partner still owes 6,000.
They are a debtor to the business.

This is no different to traditional corporation accounting where their initial capital setup was a Journal Entry - credit Issued Capital and debit Unpaid Capital, albeit both being Equity accounts.