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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Where does retained profit from previous year go on the balance

Resolved Question:

Where does retained profit from previous year go on the balance sheet of the CT600 form (we cannot balance P&L account and balance sheet without adding it somewhere)?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site. Thank you for your question.

Retained profit to date from previous balance sheet would be go on Box AC74/AC75 in the balance sheet as profit and loss account and then would also be the figure that appears on Boxes AC184 and AC218 under Statutory Accounts Notes.

As an example... last year
Profit and loss account
Profit for the year AC37=1000
Dividends AC39=0
Retained profit AC41=1000

Balance Sheet
Profit and loss AC75=1000

Statutory accounts notes
Profit and loss - opening balance AC184=1000 and AC215=0
Profit for the period AC216=AC37=1000
Equity dividends paid AC217=AC39=0
Retained profit AC218=(AC215+AC216-AC217)=1000

I hope this is helpful and answers your question.

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Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes

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