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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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ct600 submission I am submitting fourth year trading and have the error

Resolved Question:

ct600 submission
I am submitting for my fourth year trading and have the error for cells AC218 and AC187 'the retained profit at 2013/4-04-30 must tally with the value in the balance sheet'
My input figures are below:
ac12 - 14508 ac13 - 16908
ac14- 6236 ac15 - 11580
Ac20 - 8899 ac21 - 6523
ac50 - 7500 ac51 - 5200
ac54 - 1323 ac55 - 705
AC58 - 9450 ac57 - 0
ac65 - 7100
Ac70 - 1 ac71 - 1
ac74 -628 as75 - 1196 (had to amend these by +1 to account for ac70 and 71, which I was advised to do when submitting last year by HMRC over the telephone when I called them as they had a technical error and this was a workaround
AC267 - 7500 ac268 - 5200
AC146 - 2350
ac152 - 7100
ac273 - 1 ac274- 1
ac280 - 1 ac281 - 1
ac215 -(380) (from loss of 29 year 1, 351 year 2) ac216 - (1195)
ac184 - (1
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site.

Thank you for requesting I help you with your question.

I have reviewed your accounts and I have a few points for clarification.

You have made losses in this year and the year before. You are showing an increase in both stock and cash balances. How have the losses been funded and also working capital requirement for this year. I am convinced your creditors are understated.

Once I hear from you I would prepare a version of accounts that balance and there is no error message.

Also there is no need for a statutory account note on creditors covering boxes AC146 and AC152.

Many thanks
Customer: replied 2 years ago.

Hi, Thanks for the reply.

The stock is increased because we had trade credit for goods we had to the value of £2350 at the accounts cutoff -AC146.

The cash is only increased slightly- £568-I would assume this is due to selling items which have a higher margin % than other- it is for an e commerce retail shop and some goods have higher markup than others. We sell items from £1-£400 and the 'makeup' of the stock could be different this year despite still being at approximately the same value at cost.

I have put some money, in to cover working capital from time to time which I have missed out the creditors as it was cash here and there, would this allow it to balance if I could work this out and if so are you able to see from the figures what it would likely be?- or would it just show as the company making a heavier loss?

Thanks

Expert:  taxadvisor.uk replied 2 years ago.
Stuart, thank you for your reply...

I wish you to consider this version of balance sheet. It agrres and there are no errors. I have adjusted creditors to allow for payments out of own funds.

Description this year this year last year last year
of account box amount box amount
PROFIT AND LOSS
TURNOVER AC12 14,508 AC13 16,908
COST OF SALES AC14 6,236 AC15 11,580
GROSS PROFIT AC16 8,272 AC17 5,328
ADMINISTRATIVE EXPENSES AC20 8,899 AC21 6,523
OPERATING PROFIT OR (LOSS) AC26 -627 AC27 -1,195
PROFIT OR (LOSS) BEFORE TAX AC32 -627 AC33 -1,195
PROFIT OR (LOSS) FOR THE YEAR AC36 -627 AC37 -1,195
TRANSFERRED TO RESERVES AC40 -627 AC41 -1,195
Description this year this year last year last year
of account box amount box amount
BALANCE SHEET
STOCKS AC50 7,500 AC51 5,200
CASH AT BANK AND IN HAND AC54 1,323 AC55 705
TOTAL CURRENT ASSETS AC56 8,823 AC57 5,905
CREDITORS DUE WITHIN ONE YEAR AC58 10,995 AC59 7,450
NET CURRENT ASSETS AC60 -2,172 AC61 -1,545
TOTAL ASSETS LESS CURRENT LIABILITIES AC62 -2,172 AC63 -1,545
TOTAL NET ASSETS AC68 -2,172 AC69 -1,545
CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL AC70 1 AC71 1
PROFIT AND LOSS ACCCOUNT AC74 -2,173 AC75 -1,546
TOTAL SHAREHOLDERS FUNDS AC80 -2,172 AC81 -1,545
Difference xxxx 0 xxxx 0
this year this year last year last year
STATUTORY ACCOUNTS NOTES box amount box amount
profit and loss - opening balance AC184 -1,546 AC215 -351
profit for the period AC185 -627 AC216 -1,195
equity dividends paid AC186 0 AC217 0
retained profit AC187 -2,173 AC218 -1,546

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 2 years ago.

Hi, Thanks,

I appreciate that now balances but would there be a reason I could show box ac65 value- £7100 moving (as i submitted last year) to Ac53 and having some additional capital added to it (from my own cash input) f

Expert:  taxadvisor.uk replied 2 years ago.
Stuart, thank you for your reply.

Basically, the movement in creditors reflects additional stock added and maybe some of itt was not paid for at year end and additional expenses paid for out of own funds and not reimbursed at year end.

Boxes AC64/AC65 cover long term creditors and would include items where there is extended credit beyond 12 months. I have reported all creditors as being payable within 12 months.

Without closer examination of your accounting records and postings it is difficult to ascertain the correct figure.

I hope this is helpful and answers your question.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.

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