DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Capital Surplus


#1

How can I record Capital Surplus or filling in capital? Thanks.


#2

What do you mean by these terms? Are you referring to additional contributions of capital you are investing in the business? If so, see the Guides at:

http://guides.manager.io/businesses/capital-accounts
http://guides.manager.io/businesses/capital-accounts/funds-contributed


#3

Hi @Tut, thanks for your reply and references. That’s not what I mean. Perhaps I used wrong word. What I mean is exchange capital among shareholders. For example, a business is started by 2 people and 3 years later, the second person sold his/her shares the first one and the new one. How can I record them?

Thanks.


#4

If someone sells their shares in a company to another person that transaction is personal and does not affect the company accounts.


#5

Thanks @tony, but the share amounts and owners are changed. Then, in Manager, how shall we track those records of who is contributing how much?


#6

If the business structure is a company the change of shareholders is not something you record in the accounting system. It is recorded in a separate share register usually to comply with Corporations Laws. If the business structure is not a company but a partnership you should consult your accountant because in some countries a change in the partnership interests results in a dissolution of the partnership.