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I need help with my accounts. I run a very very small business

and affording an accountant isn't...
I need help with my accounts. I run a very very small business and affording an accountant isn't an option.

For the period ending November 30th 2012. Company started trading in June 2012.
Company was set up with 1 share at £1. I am the sole director and employee.

Turnover was: £5718
Cost of sales: £5378

distribution costs : 0
administrative expenses: £417 (wage I took over the whole period)
other operating income: 0

cash at bank: £571

I don't know what to put in for:

Called up share capital AC70
revaluation reserve AC76
Profit and Loss account AC74
Total shareholder funds AC80


Please advise
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Answered in 14 minutes by:
9/20/2013
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 5,060
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hello and welcome to the site. Thank you for your question.

Please advise if you paid for any company expenses/purchases out of your funds?
Did the company owe you or any one any money at 30 Nov 2012?

Many thanks
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Customer reply replied 4 years ago

I paid for everything out of my own funds initially, and the company had eventually paid me back completely by the 30th November 2012. That's when it turned a profit of £340.


 


 


The administration expenses I mentioned above are a mistake as I didn't actually take a wage from the company.


 

John, thank you for your reply and additional information.

The company has spent more than it received from sales as there was a bank balance at period end. It is likely that some expenses paid for out of pocket were not from reimbursed and or there was some cash injection in the business not fully reflected.

Based on information provided and ignoring wages as a cost, your accounts for the first period of trading would look like this:

Profit and loss account
AC12: 5,718
AC14: 5,378
AC16: 340
AC26: 340
AC36: 340
AC40: 340

Balance sheet
AC54: 570
AC56: 570
AC58: 230
AC60: 341
AC62: 341
AC68: 341

Capital and reserves
AC70: 1
AC74: 340
AC80: 341

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.




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Customer reply replied 4 years ago

Thank you very much for your help. Sorry for the mistakes I've been making, but you're right. I had put £231 into the bank account at the end of November, bringing its balance to 571.


 


Could you please tell me how to reflect that in the accounts, at which point I will be sorted.


 


Again, thank you for your guidance. It's very much appreciated.

John, thank you for your reply.

I have already reflected it in the accounts as Creditors: amounts falling due within one year. The revised figures for balance sheet are

Balance sheet
AC54: 571
AC56: 571
AC58: 230 ( this is £231 you put in less £1 for the share)
AC60: 341
AC62: 341
AC68: 341

Capital and reserves
AC70: 1
AC74: 340
AC80: 341

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.

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Customer reply replied 4 years ago

Ok, great. If I may, could I just have your opinion of the following sections that I completed:


 


For the Statutory Accounts Notes section Accounting Policies, Turnover, Called Up Share Capital and Profit & Loss Account are ticked. Does anything else need to be ticked?


 


In the following section for AC320 I have put:


 


The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).


 


In AC321 I have put:


 


Turnover comprises the invoiced value of goods and services supplied by the company


 


In AC322 I have put:


 


Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery etc - 33% on reducing balance


 


In AC323 I have put:


 


Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, not to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.


 


and in AC324 I have put:


 


Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.


---


 


"other accounting policies" at the bottom I have left blank. Does anything need to go there?


 


 


In the following section, Called up share capital I left Preference shares blank, and inputted 1 ordinary share at £1.


 


In the following section, Profit and Loss account, I haven't added any additional notes (it just displays a retained profit of £340).


For "Reserves at 29 Nov 2011" AC184, I put: 0


 


 


If all of this sounds correct to you, or if I have left anything out, please put my mind at ease and let me know.


 


I will certainly be rating you highly and you helped me immensely so far.

John, thank you for your reply.

There is no need to state accounting policy if you don't have any Intangible assets or tangible assets.

In your balance sheet you are showing bank balances and creditors only.

You can delete contents of both AC322 and AC323

In AC322 I have put:


Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc - 33% on reducing balance


In AC323 I have put:

 

Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, not to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

The rest looks fine and go for it.

I hope this is helpful and answers your question.
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 5,060
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Customer reply replied 4 years ago

Thank you. Enjoy your weekend

John, thank you for accepting my answer.

If I can be of help in future, you can contact me here and ask for me.
Have a relaxing weekend.

Best wishes
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