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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
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My company will be dissolved in two days. I have

Customer Question

Hello,My company will be dissolved in two days.I have the following situation for the last year:
Cash at bank: £3633
Creditors: £29
Total net assets: £3604Called up capital: £1000
Profit and Loss account: £2604Now, I have to prepare the final accounts for the period 01 Mar 2015 - 29 Feb 2016. In this period the company was dormant.
The bank account was already close, and all the funds have been withdraw in dividends.Can someone help me to prepare the balance for the period ending 29 Feb 2016.Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The Abbreviated Balance Sheet before withdrawal would appear rather like this: I N SOLVENTS LTD ABBREVIATED BALANCE SHEET AS AT 28 FEBRUARY 2016 Current Assets 3633less Current Liabilities 29 3604 Capital and reservesCalled up share capital 1000Profit & Loss Account 26043604 After withdrawal and the payment off of the creditors all entries would be zero. I do hope that you find my reply of assistance. Sorry, the system will not allow me to put the spaces in to reflect a true format.
Expert:  bigduckontax replied 1 year ago.
My answer, though correct was not well laid out. If you care to give me an email address I will prepare a correctly formatted one for your use.
Customer: replied 1 year ago.
***@******.***
thank you
Expert:  bigduckontax replied 1 year ago.
Please give me a few moments, I am swamped at present!
Customer: replied 1 year ago.
Well, this is how is looks the balance sheet for the last year
But as said the money from the bank was transferred in to director account as dividends, so at the moment bank account is zero
Expert:  bigduckontax replied 1 year ago.
Yes, well I did say that after all creditors had been settled and the share capital repaid then all entries would be zero anyway. The transfer of the moneys to the director as a dividend creates a possible headache his personal tax affairs. It will also skew the whole position. As he is being refunded the company's assets at dissolution then the only liability would be a possible Capital Gains tax exposure.
Expert:  bigduckontax replied 1 year ago.
Post to clear my question list.
Customer: replied 1 year ago.
Ok, so the balance sheet for this year year it will be exactly like the one you send me?
Can you please tell me what represents -327 from Profit & loss?
Thank you
Expert:  bigduckontax replied 1 year ago.
Forget the data in the two right hand columns which I inadvertently left! Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 1 year ago.
I was thinking to put only £1000 to cash at bank which is the value of shares
What do you think?
Thank you
Expert:  bigduckontax replied 1 year ago.
There is another way around this matter. Instead of dissolving the company why not reduce it to a shell and then sell it off. There is a ready market for second hand companies and you can even flog them off on eBay! Then you do not have to go through the whole palaver of shutting down a company, a rather more laborious exercise than it was in the past. You might get some money for it too, rather more than you might think. Please be so kind as to rate me before you leave the just Answer site.
Customer: replied 1 year ago.
Now is to late, the company it will be dissolved tomorrow, 19 of March.
To be honest I don`t know if I should send this set of accounts for period ending 29 Feb 2016 or not, cause any way the SIC Code in to the AR was 99999 - dormant company.
So need to decide quick if to send the accounts or not and if yes I would prefer the value shown in the balance sheet Cash at bank to be £1000. (shares capital).
Please help to choice the simple way.
Thank you
Expert:  bigduckontax replied 1 year ago.
Just file them with HMRC on line at once would be my advice and don't forget to elect for the option for abbreviated accounts to be extracted for Companies House; one less chore to do.