Fund Injection from Shareholder as Business Capital

[adit]

@tony

It depends on the type of business structure you are using to operate your business. If it is an incorporated company the injection of equity would be as Issued Capital. If your business is operated as a partnership or sole trader, create Capital Accounts with a sub account named “Funds Contributed” to record the injection of equity.

I have downloaded the offline software and I am very confused on how to record these entry as stated above.

And as a small business owner I could not afford accountant yet, so I apologise in advance for a very stupid question for some.
I have a couple of people already injecting money to the company and I want to record that here. What is the easiest way to execute this? I have tried to follow some recommendation from other topics:

1. created the capital account.
2. using “receipt and payment” tab > receipt > bank account > status cleared > capital account > funds contributed > amount > update.
   shown as follow
   
   

my confusion is when I go to the capital account page, it shows that the account registered that same amount as “Amount to Pay” while they actually already transferred the fund.

any help will be hugely appreciated!

[beastfellow]

Funds contributed are equity and from accounting point of view equity is payable in case the business is closing or if the partner is claiming his/her capital back. So the amount added as capital will always show Amount to Pay. Don’t worry you are doing fine. Dividends and profit sharing comes later on. Please read the guides whenever you get stuck. If still confused then you can search in forum for the discussions.

[adit]

thanks beast, for beasting it on being a beasty beast!