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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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I am completing my first full year's accounts entry for

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I am completing my first full year's accounts entry for Companies House. (8 April 2014 to 30 April 2015.)I am having problems with the Balance Sheet.The Error message says :-There is a problem with the form
Total net assets must equal capital and reserves for the current year.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.Please send me the image of your balance sheet page and I will review it for you. Many thanks
Customer: replied 1 year ago.
Please see attached.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your replyYou have a difference between total net assets AC68 (2,991) and total shareholders' funds AC80 (500). Please advise what is your called up share capital (i.e. shares in issue when you started operation)Also how much profit did you make in the first accounting year. Many thanks
Customer: replied 1 year ago.
Called Up Share Capital is £500. The total Profit for the Year (after taxes, but before Dividends) is £11148
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your replyAs your total net assets are £2,991, I presume your retained earnings after dividends are (11,148 less 2,491)= £8,657Based on this your balance sheet should look likeTotal Net Assets (AC68) = £2,991 Capital and reservesCalled up share capital (AC70) = £500Profit and loss account (AC74) = £2,491Total Shareholders' Funds (AC80) = £2,991 This will make your balance sheet agree. 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.
Hello,Just one point, the Actual Dividends paid was £8664. This leaves me with Total Share Holders Funds (AC80) of £3721.In order to balance this, I have entered a "Goodwill" Intangible Asset (AC42 & AC48) of £730. The Balance Sheet then balances OK.But this creates issues at the end of the process. As such the Intangible Asset is my skills/knowledge of the industry which I am in. This does not have a cost as such. See attached
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your replyYou had said earlier that profit after tax and before dividends was £11,148Called up share capital is £500.Now you are say the dividends paid were £8,664So total shareholders funds becomes (11,148-8,664)+500 = £2,984You should make your currents assets AC60 read £2,984...I am surprised you have not shown CT as a creditor.Here is my version based on new information provided by you.I hope this is helpful and answers your question.
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