Can somebody tell me. Am I report $0.00 balance in capital account in financial statement when the company still running?( in USA report accounting)
According my knowledge, we can make the entry in capital account when close the company or add/remove the partner or increase/decrease the investment amount, right?
For example, the company recorded $20,000.00 in capital. Later, the investor need to withdraw all capital amount(the company still running). Can he do that?
In point of my view, I will record that withdraw is shareholder's loan not is withdraw the capital, right?
Please hlep me to slove this question. Let me tell someone, he is wrong!
Thanks
JEff
capital account in reporting
2010-04-10 8:17 pm
回答 (3)
2010-04-10 10:00 pm
✔ 最佳答案
Firstly, a Company MUST have a capital and it is govern by law. I am not quite sure about US law but concept is the same. Any withdrawal by shareholder can only be treated as a loan until the company liquidates and repays all outstanding debts. If a shareholder can withdraw his capital, creditors will be at risk and any action causing capital reduction should be under court application in Hong Kong.For reference only.
2010-04-14 8:12 pm
2010-04-11 6:18 pm
For a new business to start up, the owner(s) must inject funds as capital . This capital will be a liability of the business company to the owner(s). So, there must be a capital account in the running company, whether this is a firm or a limited company..
Yes, any changes in partnership may affect the capital account to be adjusted. This account will be zero only when the company is closed.
No. As the capital $20,000 had been injected, it could be reduced say, to $1 but could not be in zero unless the company is to be closed.
In principle, yes. The amount withdrawn could be a debit to current account with or loan to the partners/ shareholders.
Yes, any changes in partnership may affect the capital account to be adjusted. This account will be zero only when the company is closed.
No. As the capital $20,000 had been injected, it could be reduced say, to $1 but could not be in zero unless the company is to be closed.
In principle, yes. The amount withdrawn could be a debit to current account with or loan to the partners/ shareholders.
收錄日期: 2021-04-25 20:31:30
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