What is an Issue of Shares?

No it isn't, that would be daft.

No it isn't, that would be daft.

You issue the shares and then you say to yourself "I have issued the shares".

Debit: bank Credit: ordinary share capital

But your company - like it or not - already has a Director's Loan Account. It cannot therefore be dormant (although in the grand scheme of things I don't suppose much will happen if you pretend it is).

Daft or not, I have often seen it done

At the point when the subscribers have irrevocably committed themselves. If they have signed the Memo, that will do.

But if their cash has not been paid, you'll have to show it as a debt from them in the balance sheet.

I would say that it's more prudent to wait until you have got the cash in before uttering the magic formula.

This opinion is worth what you paid for it; you can not rely on it for any useful purpose. Get paid advice - especially if you're planning on some complicated manoeuvre depending on the magic formula being correct.

After the shares have been issued. Isn't that obvious?

I think you are trying to ask one question to get the answer to a different question.

It would make more sense to ask the question you want answered.