Company Accounts Help

Harry,

I know it sounds incredibly biased but please for you own sake get yourself an accountant. Your questions show a lack of even rudimentary understanding of double entry bookkeeping, let alone understand the necessary accounting principles, applicable accounting standards or tax law.

You have chosen rightly or wrongly to form a company – and part of that is the fact its too complex for the average lay person to deal with successfully their own returns.

I know it sounds mean but the sooner you take it on board the sooner you will get your returns sorted out.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

James Smith,

What you wrote doesn't sound incredibly biased!

What you wrote sounds High Handed.

'Rudimentry' this and 'principles and standards' that!!

As I said above, what I am trying to do is to learn a bit about Company Accounts for my new Ltd Company. When it comes to doing formal accounts I will hire an accountant.

Anyone that can help answer any of my above questions it would be a big help.

Thanks.

Originally posted by: Harry H

4) Is it common practice to make your balance sheet balance using magic?

I had to re-read that several times to ensure I wasn't seeing things.

Magic is not an option (try explaining to the Inland Revenue that you used magic to balance)
Magic (aka creative accounting) can land you in jail in serious instances.

Get yourself an accountant as soon as you can.

If you have 0 share capital then you have 0 shares and fall outside of company laws
A basic requirement of a limited company is to have shares, therefore you cannot have 0 shares.

Have a look at theinformation on this website
http://www.start.biz/nationwide/ltd_information.php
It explains all about Ltd companies.

One last thing - Business is a team sport - Get yourself an accountant as soon as you can.

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Glenn Watson Business Consultancy @ Inzvestor

" Business - A Very Serious Business."

Yes Inzvestor.

It was perhaps a bit too tongue in cheek that question.

But surely theres some one in this forum that could help me understand things without having a big rod up their arse.

You can't all write your posts like a Head Masters School Report.

??

Hi

Whilst I do agree that you need an accountant, at the risk of being shot down in flames, I will try to answer some of your questions. Bear in mind that this is very general (and simplified) and all the other qualifiers should apply that an accountant would put on advice given – i.e. it is not advice and should not be relied upon!

1) The share capital in the BS should be the amount on your set up forms sent to companies house. E.g. this could have been £10. The accounting entries would be £10 to share capital and £10 to cash / bank i.e. you should have put that amount into the business.

2) I don’t understand what you mean here – the fixed assets will be what you have paid minus depreciation. This is an area where an accountant can help as there are various entries between the balance sheet and the profit and loss account.

3) Depending on the ‘agreement’ you and the company reached when you put the loan into the business the loan will be either a current or long term liability. I am assuming here that you are loaning the company money.

4) If only magic did work then I would not have spent many hours looking for errors! Unfortunately - there is no magic – it just means that you have done something wrong!

5) They will be taken care of in your balance sheet as your retained capital i.e. capital carried forward = capital brought forward plus profit or minus losses.

Hope this helps.

Elaine Clark

http://www.letsdev.com">href="http://www.letsdev.com">http://www.letsdev.com  http://www.letssalvageit.com  http://www.letsgetarefund.com   http://www.letsdoaswap.com http://www.letsmeet4.com

Harry - I don’t mean to be snotty it just looked from your questions like you where about to make a huge mess of your stat accounts. I am relieved for your sake this was not your intention. Sometimes people do need a "rod up their arse" as you put it in order to jolt themseleves out of this sort of DIY mindset.

If you want to lean double entry bookkeeping, I would suggest Frank Woods “Business Accounting 1” which is pretty good. About 2 hours a day for a couple of months and you should be in a position to produce your first trial balance that balances without the aid of a wand, although still a long way off a good set of stats.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

Elainec100, Thanks for your help

I've got my spreadsheet model to almost balance now so I think I have at least a basic understanding of how it all fits together. I appreciate I am no expert though! but its going to be useful when I have a meeting with an accountant.

I think the Head Masters should perhaps give you a Merit Badge or at least a Gold Star.