How is venture capital financing accounted for in balance sheet?
Posted by admin on 24 Nov 2008 4:31 am. Filed under Other - Business & Finance.
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I imagine if the financing is structured as a convertible loan, then the money is added as a liability. But if the investment is in return for common shares, how is the transaction recorded?
I imagine if the financing is structured as a convertible loan, then the money is added as a liability. But if the investment is in return for common shares, how is the transaction recorded?
One Comment to “How is venture capital financing accounted for in balance sheet?”
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On November 27th, 2008 at 8:16 am
DR – Cash
CR – Capital stock (at the par value)
CR – Additional paid-in capital (at any excess to par value)