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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Please advise: I have received a letter from Companies House stating "1. the balance

Customer Question

Please advise:
I have received a letter from Companies House stating "1. the balance sheet does not balance. The net assets figure must be the same as the shareholder funds figure for the balance sheet to balance
2. Our records show the company has £3 in share capital which has not been shown
3. The format is incorrect. I have enclosed an example balance sheet for you to refer to
4. there are no comparative figures on the balance sheet"
This is what the abbreviated balance sheet looks like:
Fixed Assets £50
Current Assets
Cash at bank (as at 05/04/14 includes Director deposits)£320.43
Stocks £3.00
Sub Total £373.43
Wages (To Directors) £250.00
Creditors £0.00
Net Assets £123.43
Note 1 Fixed assets comprise stationery and teaching materials the value being an estimate to the nearest £5.00
These are in the same format as I used last year and there was no query.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Whilst your balance sheet figure seems to balance the profit and loss account (P & L) would appear to be defective. You have quoted no brought forward figure from the prior period, no income merely expenditure. When you have prepared a full P & L account then the carried forward figure must correspond with the balance sheet. These would appear to be where the errors are which is causing you problems when you try to file the accounts on line.
If you rectify these errors and still are unable to file please don't hesitate to come back to me for further guidance.
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site.

You had originally requested that I help you with your question.
I note another expert has answered the question.

This is my opinion and you may wish to take things on board. If you wish to continue with the other expert, please let me know...

I think you ought to revisit your balance sheet too.
It is not normal to have state stationery and technical materials as fixed balance sheet. They are revenue expenditure items.
Also you state your stock is £3. This is similar to the called up share capital. I am surprised you have such low stock figure. What is the nature of your business.

Wages to directors is a profit and loss item. It would be added to creditors only if these wages remain unpaid at year end.

You say this is the format you used last year and there was no query. You should bear two things in mind.. Companies House would
- accept accounts provided the arithmetic is correct;
- not challenge if you have wrongly classified expenditure (revenue as capital).

Please let me know if you need additional help.

Many thanks

Expert:  bigduckontax replied 2 years ago.
I am delighted that my colleague has come in to assist you. I will opt out in consequence.
Expert:  taxadvisor.uk replied 2 years ago.
I am happy you help you reconstruct your accounts for filing at both the Companies House and CT600 Return to HMRC.

Many thanks