Company Shares

[Jenny100]

Hi,
If a Ltd Company was set up with 1 £1 ordinary share and then an investor pays £60k to have a 25% share on the business how is the best way to show this in the accounts, do I need to split the denomination of the share to say 10 10p shares and then calculate a share premium account, or is there a better way to do this?

Thanks in advance

[FredPuli43]

Are you sure that the company only has one ordinary share? Has it any other category of shares ('Preferred shares' etc)?
Look at the memorandum and articles. I suspect you'll find provision for 100 shares or some other number allocated.