Phill, in your introduction you stated"My business transaction are quite simple and I just want to make sure that the capital injection I put into the company comes out again somewhere down the line and after speaking to a Tax advisor at HMRC a couple of days ago, he advised me to split my purchases across Cost of Sale and Intangible and Tangible Assets and I think this is where I'm having issues".Please advise what your capital injection was and how much of that remained unpaid to you at the year end.Was it used to fund purchases and/or fixed assets and how has it been accounted for?Many thanks
Hi there, just to paint a clearer picture of our business, we incorporate in July 2012 and began learning our business with software and courses purchased. We launched our first product in December 2012 and thus our first income didn't appear until Dec 2012. My initial concern is that our total expenditure (capital injection) was £8739.00 and I wanted to make sure this was being token down and entered into the correct boxes, spread across:I'm not sure if this is correct or indeed the best practice?Cost of Sales AC14ItemCost - GBPCompanies House Registration£18.00Apple Developer Registration£60.00Elance Job listing£3.10Graphic PSD Template£2.50App Coder£140.55£224.15£224.00Intangible Assets AC42ItemCost - GBPApp Training Course£1,375.77App Course & Coding Software£6,384.60£7,760.37£7,760.00Tangible Assets AC44ItemCost - GBP5 year domain name renewal£34.49Macbook Pro laptop£700.00Mac OSX Snow Leopard 10.6.3 Family Pack£21.00£755.49£755.00TOTAL£8,739.00Here are the figures you requested:DescriptionBoxThis yearof accountNo.AmountPROFIT AND LOSSTURNOVERAC12509COST OF SALESAC14224GROSS PROFITAC16285DISTRIBUTION COSTSAC180ADMINISTRATIVE EXPENSESAC20324OTHER OPERATION INCOMEAC220OPERATING PROFIT OR (LOSS)AC26-39INTEREST RECEIVABLEAC280INTEREST PAYABLEAC300PROFIT OR (LOSS) BEFORE TAXAC32-39TAXAC340PROFIT OR (LOSS) FOR THE YEARAC36-39DIVIDENDS FOR THE PERIODAC380TRANSFERRED TO RESERVESAC40-39DescriptionBoxThis yearof accountNo.AmountBALANCE SHEETINTANGIBLE ASSETSAC427760TANGIBLE ASSETSAC44755TOTAL FIXED ASSETSAC488515STOCKSAC500DEBTORSAC520CASH AT BANK AND IN HANDAC540TOTAL CURRENT ASSETSAC560CREDITORS DUE WITHIN ONE YEARAC580NET CURRENT ASSETSAC600TOTAL ASSETS LESS CURRENT LIABILITIESAC628515CREDITORS DUE AFTER MORE THAN ONE YEARAC648739PROVISION FOR LIABILITIESAC660TOTAL NET ASSETSAC68-224DescriptionBoxThis yearof accountNo.AmountCAPITAL AND RESERVESCALLED UP SHARE CAPITALAC700REVALUATION RESERVEAC760PROFIT AND LOSS ACCOUNTAC740TOTAL SHAREHOLDERS FUNDSAC80-224Differencexxxx0DescriptionBoxThis yearof accountNo.AmountSTATUTORY ACCOUNTS NOTESprofit and loss - opening balanceAC1840profit for the periodAC185-39equity dividends paidAC1860retained profitAC187-39AC187 Currently showing the ERROR)
I hope this is helpful and answers your question.
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Phill, I have just noticed you have within tangible assets domain renewal charge £34 and family pack of some software £21. I would expense these items to admin costs being small value expenditure and just leave the cost of Macpro laptop in tangible assets.I hope this is helpful.
Thank you, XXXXX XXXXX entered all the figures and submitted to Companies House, so they've gone now. Would you suggest I make the changes you mentioned from tangible assets to admin expenses, or leave the figures as they were now I'm filling out the Computation part of the CT600?
If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get credited for it.
Hi there, many thanks for your detailed response, very much appreciated and all goo, thank you.
Before we sign off, can you please explain your computations on what you said here:
There was some cash flow from income and expenses has appear to have missed double entry and I have reduced your creditors in Box AC64 by £185 to reflect this (Sales revenue £509 and admin costs £324).
I want to make sure my book tally with your suggestions and this part was a little unclear, thanks.