How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxadvisor.uk Your Own Question

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

, I am filing Corporation Tax 2 and I'm stuck

Resolved Question:

Hi, I am filing for my Corporation Tax for year 2 and I'm stuck in filing my CT600. I keep getting an error message:
X ERROR:The retained profit at 2014-05-31 must tally with the value in the balance
sheet. Please check and amend your entries. Retained Profit xxxx AC187 1054
Here are my Entries:
PROFIT AND LOSS ACCOUNT
Year 2 Year 1
TURNOVER AC12 £39937 AC13 £0
Cost of Sales AC14 £0 AC15 £0
Gross Profit or (loss) AC16 £39937 AC17 £0
Distribution Cost AC18 £0 AC19 £0
Administrative Expenses AC20 £37625 AC21 £769
Other Operating Income AC22 £0 AC23 £0
Operating Profit or (Loss) AC26 £2312 AC27 £ -769
Interest Receivable and Similar Income AC28 £0 AC29 £0
Interest Payable & Similar Charges AC30 £34 AC31 £0
Profit or (loss) on ordinary activities before Taxation AC32 2278 AC33 -769
Tax on Profit or Loss on Ordinary Actvities AC34 456 AC35 0
Profit or (loss) for the financial year AC36 1822 AC37 -769
Dividends for the period AC38 0 AC39 0
Net Balance for the financial period transferred to Reserves AC40 1822 AC41 -769
PREVIOUS YEAR PROFIT & LOSS
Opening Balance (Year 1) AC215 £0
Profit or (loss) for period AC216 £-769
Equity Dividends paid AC217 £0
Retained Profit as at xxxx(end of Yr1) AC218 £-769
CURRENT YEAR PROFIT & LOSS
Reserves at xxxx(start of Yr2) AC184 £-769
Profit for Year AC185 £ 1823
Equity dividends paid AC186 £ 0
Retained profit xxxx (end of Yr2) AC187 £1054
BALANCE SHEET
Fixed Assets Year 2 Year 1
Intangible Assets AC42 0 AC43 0
Tangible Assets AC44 300 AC45 0
Total Fixed Assets AC48 300 AC49 0
Current Assets
Stock AC50 311 AC51 764
Debtors AC52 147 AC53 0
Cash at Bank and in Hand AC54 1865 AC55 152
Total Current Assets AC56 2323 AC57 916
Creditors: amounts falling due within a yr AC58 0 AC59 149
Net Current Assets(liabilities) AC60 2323 AC61 767
Total assets less current liabilities AC62 2623 AC63 767
Creditors: amounts falling due after more than 1yr AC64 800 AC65 1535
Provision for Liabilities AC66 0 AC67 0
Total net assets (liabilities) AC68 1823 AC69 -768
CAPITAL AND RESERVES
Called up capital AC70 1 AC71 1
Revaluation Reserve AC76 0 AC77 0
Profit & Loss Account AC74 1822 AC75 -769
Total Shareholders funds AC80 1823 AC81 -768
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Please leave it with me to review your accounts and I will revert to you with questions if any.

My initial thoughts are your creditors may be understated.

Many thanks
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your patience

At present you have a difference of £769 between total net assets (AC68) and Total shareholders’ funds (AC80).

Profit and loss account (AC74) should equal retained profit (AC187) where as you are showing profit for the year (AC40) as retained profit at end of year Two. This normally happens in year One unless there is no activity in the subsequent year.

Secondly, you have made a provision for corporation tax of £456 on current year profits AC34. This would not have been paid by the year end and it should therefore be included in creditors AC58.

Thirdly, you are showing a reduction in stock at year end year on year (764-311) = £453 yet you have not shown any cost of sales in the year (AC14). A reduction in stock is a charge to profit and loss account.

Bearing my aforementioned notes, I have adjusted creditors and the revised figure in Box AC58 reads 769. I have also changed the figure in Box AC74 to read £1,053

This makes your balance sheet agree and no error message. Here is my version

PROFIT AND LOSS

Box No.

This year

Box No.

Last year

turnover

AC12

39,937

AC13

0

cost of sales

AC14

0

AC15

0

gross profit

AC16

39,937

AC17

0

distribution costs

AC18

0

AC19

0

administrative expenses

AC20

37,625

AC21

769

other operating income

AC22

0

AC23

0

operating profit or (loss)

AC26

2,312

AC27

-769

interest receivable

AC28

0

AC29

0

interest payable

AC30

34

AC31

0

profit or (loss) on ordinary activities before taxation

AC32

2,278

AC33

-769

tax on profit or loss on ordinary activities

AC34

456

AC35

0

profit or (loss) for the financial year

AC36

1,822

AC37

-769

dividends for the period

AC38

0

AC39

0

net balance for the financial period transferred to reserves

AC40

1,822

AC41

-769

BALANCE SHEET

Box No.

This year

Box No.

Last year

intangible assets

AC42

0

AC43

0

tangible assets

AC44

300

AC45

0

TOTAL FIXED ASSETS

AC48

300

AC49

0

stocks

AC50

311

AC51

764

debtors

AC52

147

AC53

0

cash at bank and in hand

AC54

1,865

AC55

152

TOTAL CURRENT ASSETS

AC56

2,323

AC57

916

creditors due within one year

AC58

0

AC59

149

NET CURRENT ASSETS

AC60

2,323

AC61

767

TOTAL ASSETS LESS CURRENT LIABILITIES

AC62

2,623

AC63

767

creditors due after more than one year

AC64

800

AC65

1,535

provision for liabilities

AC66

0

AC67

0

TOTAL NET ASSETS

AC68

1,823

AC69

-768

CAPITAL AND RESERVES

Box No.

This year

Box No.

Last year

called up share capital

AC70

1

AC71

1

revaluation reserve

AC76

0

AC77

0

profit and loss account

AC74

1,053

AC75

-769

TOTAL SHAREHOLDERS FUNDS

AC80

1,054

AC81

-768

Difference

xxxx

769

xxxx

0

STATUTORY ACCOUNTS NOTES

Box No.

This year

Box No.

Last year

profit and loss - opening balance

ac184

-769

ac215

0

profit for the period

ac185

1,822

ac216

-769

equity dividends paid

ac186

0

ac217

0

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.

STATUTORY ACCOUNTS NOTES

Box No.

This year

Box No.

Last year

profit and loss - opening balance

ac184

-769

ac215

0

profit for the period

ac185

1,822

ac216

-769

equity dividends paid

ac186

0

ac217

0

retained profit

ac187

1,053

ac218

-769

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 1 year ago.

Thank you so much for your advice. I have now successfully submitted my Returns.

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your good words and I thank you for. accepting my answer.

Best wishes.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.