{"id":4988,"date":"2014-07-25T07:05:58","date_gmt":"2014-07-25T05:05:58","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4988"},"modified":"2014-07-13T07:06:38","modified_gmt":"2014-07-13T05:06:38","slug":"payment-onto-share-capital-account","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/payment-onto-share-capital-account\/","title":{"rendered":"Payment onto share capital account"},"content":{"rendered":"<p>Payments into equity are made to two types of accounts \u2013 share capital and reserves. No payments are to be made to retained earnings. Retained earnings account can only be changed in two circumstances \u2013 for paying dividends (that is payment is done from retained earnings) or changed when dealing with restructuring, i.e. merging or dividing entities. That\u2019s however something we\u2019re not focusing on at this point. \u00a0<!--more--><\/p>\n<p>With the below we\u2019re showing an example on how to increase the share capital with cash being paid into the share capital account. Note that in case of non-monetary contribution, the account for\u00a0<em>Cash and cash equivalents<\/em>\u00a0should be changed to a respective asset account, i.e.\u00a0<em>Machinery or Buildings.<\/em><\/p>\n<p>The accounting entry to be made is as follows:<\/p>\n<p>Db\u00a0Cash and cash equivalent s10,000<\/p>\n<p>Cr\u00a0Share capital 10,000<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payments into equity are made to two types of accounts \u2013 share capital and reserves. No payments are to be made to retained earnings. Retained earnings account can only be changed in two circumstances \u2013 for paying dividends (that is payment is done from retained earnings) or changed when dealing with restructuring, i.e. merging or [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"class_list":["post-4988","post","type-post","status-publish","format-standard","hentry","category-1-20-capital"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4988"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4988\/revisions"}],"predecessor-version":[{"id":4989,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4988\/revisions\/4989"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}