Company Registered With 2.1million Baht Capital

[Zen]

I have some questions about a company that is registered initially with 1million baht capital and then later increased to 2.1mil, but never had any cash really contributed by the shareholders.

During the start-up of the business, the director-cum-shareholders lends some money to the company to open the bank account, to buy fixed assets etc...and when the company is able to run and generate its own income, the company re-pays the loan taken from the director-cum-shareholder.

How does this affect the balance sheet of the company? What is ลูกหนี้กรรมการ and ลูกหนี้ค่าหุ้น?

[Sunbelt Asia]

I have some questions about a company that is registered initially with 1million baht capital and then later increased to 2.1mil, but never had any cash really contributed by the shareholders.

During the start-up of the business, the director-cum-shareholders lends some money to the company to open the bank account, to buy fixed assets etc...and when the company is able to run and generate its own income, the company re-pays the loan taken from the director-cum-shareholder.

How does this affect the balance sheet of the company? What is ลูกหนี้กรรมการ and ลูกหนี้ค่าหุ้น?

As of Jan 1st 2007, you need to show the paid up capital in order to increase the capital. 25% of this capital must be cash and the government will look at the bank statement, before allowing the company to increase its capital.

www.sunbeltasiagroup.com

[Zen]

I have some questions about a company that is registered initially with 1million baht capital and then later increased to 2.1mil, but never had any cash really contributed by the shareholders.

During the start-up of the business, the director-cum-shareholders lends some money to the company to open the bank account, to buy fixed assets etc...and when the company is able to run and generate its own income, the company re-pays the loan taken from the director-cum-shareholder.

How does this affect the balance sheet of the company? What is ลูกหนี้กรรมการ and ลูกหนี้ค่าหุ้น?

As of Jan 1st 2007, you need to show the paid up capital in order to increase the capital. 25% of this capital must be cash and the government will look at the bank statement, before allowing the company to increase its capital.

www.sunbeltasiagroup.com

Sorry I forgot to mention that the company had already been registered long ago and the capital already increased before 1st Jan 2007. So, how does that affect the balance sheet?

[Wekhin]

When a shareholder lends money, say cash, to the company,

Dr. Cash (assets)

Cr. Payables - borrowings from shareholder (liabilities).

When company pays back,

Dr. Payables - borrowings from shareholder (liabilities)

Dr. Cash (assets)

ลูกหนี้กรรมการ = Receivables: lending to director

ลูกหนี้ค่าหุ้น = Receivables: share capital

[Wekhin]

My apology for typo error.

When company pays back,

Dr. Payables - borrowings from shareholder (liabilities)

Cr. Cash (assets) <----

Edited January 5, 2007 by Wekhin

[taxin]

I have some questions about a company that is registered initially with 1million baht capital and then later increased to 2.1mil, but never had any cash really contributed by the shareholders.

During the start-up of the business, the director-cum-shareholders lends some money to the company to open the bank account, to buy fixed assets etc...and when the company is able to run and generate its own income, the company re-pays the loan taken from the director-cum-shareholder.

How does this affect the balance sheet of the company? What is ลูกหนี้กรรมการ and ลูกหนี้ค่าหุ้น?

As of Jan 1st 2007, you need to show the paid up capital in order to increase the capital. 25% of this capital must be cash and the government will look at the bank statement, before allowing the company to increase its capital.

www.sunbeltasiagroup.com

So what should the remaining 75% be made out of ? Can this be offset against assets ?