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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 3741
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi There, I am busy filing my second year accounts using

Resolved Question:

Hi There,

I am busy filing my second year accounts using the HMRC CT600 form and I have managed to get through to the profit and loss account where I have got stuck on AC187 where it has correctly stated the retained profits being the reserves carried forward from last year and the current years profits added together. However it has come up with an error saying retained profits must balance with the balance sheet.
AC40 matches AC74 which reflects the net balance transferred to reserves for the current year, however it doesnt match AC187 as it doesnt include the previous years reserves.

Please help
Submitted: 1 year ago.
Category: UK Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Please advise figures for
AC40
AC41
AC74
AC75

Furthermore
AC41 = AC75 =AC184
AC74 = AC187

many thanks
Customer: replied 1 year ago.

Please advise figures for
AC40 - £8937
AC41 - £2786
AC74 - £8937
AC75 - £2786


 


Should I be using an accumulative P&L (beginning 2011 to end 2012) in inputting my figures?

Expert:  taxadvisor.uk replied 1 year ago.

Dave, thank you for your prompt reply.

Assuming there were no dividends declared in either year and both years are showing a profit, then you should be showing the following

Box AC74 = 11,723
Box AC75 = 2,786

AC74 = AC187 and
AC41 = AC75 = AC184 = AC218



PROFIT AND LOSSBox No.This yearBox No.Last year
profit or (loss) for current year after taxac368,937ac372,786
dividends for the periodac380ac390
net balances transferred to reservesac408,937ac412,786
STATUTORY ACCOUNTS NOTESBox No.This yearBox No.Last year
profit and loss - opening balanceac1842,786ac2150
profit for the periodac1858,937ac2162,786
equity dividends paidac1860ac2170
retained profitac18711,723ac2182,786

 

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

If I put £11,723 in Box AC74 then I get the following error


 


ERROR:The balance sheet does not tally. Shareholders funds must equal the total net assets (liabilities). Please check your figures and correct your entries as necessary.


 


I assume this is box AC68 which has £8940 in it.


 


No dividends have been drawn over the two years.


 


I have check all the following figures that you gave above and all my figures tally with yours.


 

Expert:  taxadvisor.uk replied 1 year ago.
Dave, thank you for your reply..

Please advise what you have in
Box AC68 and Box AC69 - Total Net Assets
Box AC70 and Box AC71 - Called up share capital
Box AC74 and Box AC75 - Profit and loss account
Box AC80 and Box AC81 - Total Shareholders' Funds

many thanks
Customer: replied 1 year ago.

Box AC68 £8937 and Box AC69 £2786- Total Net Assets
Box AC70 £0 and Box AC71 £0 - Called up share capital (i know this is not right as there are 3 shares issued)
Box AC74 £11723 and Box AC75 £2786- Profit and loss account
Box AC80 £11723 and Box AC81 £2786- Total Shareholders' Funds


 


Thanks

Expert:  taxadvisor.uk replied 1 year ago.

Dave, thank you for your reply..

First of all, you should correct the error on called up share capital.
Secondly, if the profit for the year is £8,937 then there is an error when reporting your Total Net assets Box AC68 as it should read (11,723+3) = £11,726. there appears to be an error of (11,726-8,937) = £2,789 equivalent to your Total Net assets for Year One revised for called up share capital of £3.

Please revisit the upper half of balance sheet.

 

What is your deadline for filing CT600Return?

 

Customer: replied 1 year ago.

Do i need to use an accumulated P&L report. If I use the P&L for only 2012 then I get £8937 in AC 40 which I assume should be £11723 is this correct?

Expert:  taxadvisor.uk replied 1 year ago.
Dave, thank you for your reply.

In the balance sheet, you should use accumulated P&L report.
Also you should include called up share capital which will read £3 for each year.

To balance £3 called up share capital, I suggest you increase your cash/bank balance with same amount to reflect £3 cash paid for the shares.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 3741
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other UK Tax Specialists are ready to help you
Customer: replied 1 year ago.

am i able to take this up tomorrow morning again as I would like to work on it then (at it is nearing midnight here) or do I need to rate you now (an I assume pay). I would prefer to keep this open in case I get stuck.


 


Thanks

Expert:  taxadvisor.uk replied 1 year ago.

Dave, thank you for your reply.

If you are happy with the service, then I will appreciate if you would rate it.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 1 year ago.
Dave, thank you for accepting my answer.

If I can be of help in future, you can contact me here. Just ask for me.

Best wishes

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