Share Transfer

A Share Transfer records a change in the company's own shares: an Issue of new shares to a shareholder, a Transfer from one shareholder to another, or a Purchase back by the company. It names the share type, the number of shares, the rate and the from and to shareholders, and updates each Shareholder's holding. An issue posts the money received against Share Capital, which is how the demo's Rs 25,00,000 of capital arose from 25,000 shares at Rs 100. A transfer between shareholders changes the register but posts nothing, since the company receives no money. Submitted transfers lock. Keep the Company Registrar's filing with each transfer.

Amount = Number of shares x Rate per share; 25,000 x Rs 100 = Rs 25,00,000

1. 01Go to Invoicing > Shareholder and make sure each founder has a record.
2. 02Go to Invoicing > Share Transfer > New and set Transfer Type to Issue.
3. 03Pick the share type Equity, the To Shareholder, the number of shares and the rate.
4. 04Set the asset account Bank Account - YFF and the equity account Share Capital - YFF.
5. 05Submit. The entry below posts and the shareholder's holding is updated.
6. 06For a transfer between shareholders, set Transfer Type Transfer; it posts nothing.

Create under Accounts > Share Transfer. Submitted transfers lock.

Issue 25,000 shares at Rs 100 to the founders: Share Capital Rs 25,00,000.