it is possible,they don't know about anything about business but want to invest and share profit what can I do what is process of accountency
Answers (1)
of course you can if you want. first you need to agree how much they will invest. then you will follow the legal process to change your act of incorporation acknowledging their contribution. it is not so much about accounting it is about legal procedure. after signing the new incorporation act they are liable to actually pay the contribution they committed to. in terms of accounting when you have the legal new incorporation act duly formalised you DR receivables and CR Unsubscribes share capital. When the payment is received DR bank CR receivable & DR Unsubscribed share capital CR Share capital