Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
What exactly is your query? At present the company's accounts would be pretty simple.
Please remember that as a director any payments to you by the company must be made through PAYE channels. A director is an employee per se.
Can you please verify what you mean by the 'annual return' Gerry? I do not wish to be pedantic, but the annual return, for which there is a fee of GBP 13, does not include accounts.
If you are trying to file Abbreviated Accounts then the easiest method is to use the extract procedure in the Corporation Tax (CT) Return. Here it is essential that before you attempt to enter data to ensure that firstly the balance sheet (BS) actually balances and secondly that data common to both the BS and the Profit and Loss Account (P&L) correspond. It is fatally easy the start this process with errors resulting in the message you are receiving.
Are you sure that your balance sheet actually balances Gerry? Remember for this data the sum of the issued capital and the P&L balance are aggregated.
With respect, no wonder you are getting that error message. You have not included any entry for Shareholders' Funds so the account does not balance as I originally suggested.
So your capital and reserves would total GBP 2000.
Is it working?
Right the original book keeping entries for the income and expenditure would be:
Dr Cash/bank, Cr Sales 2500.
Dr Wages, Cr Cash/Bank.
Which leaves us with the problem from whence did the 1000 quid of fixed assets come? Was the one pound company share subscribed?
You cannot just produce Fixed Assets like a rabbit out of a hat. From whence did the 1000 quid come to buy these assets?
Now we are getting somewhere. The book keeping entry for that would be:
Debit Director's Loan, cr Fixed Assets.
Now we have a balance sheet which looks like:
Fixed Assets 1000
Creditors not repayable within one year Director's Loan 1000
Share Capital 1
There we are all square. The 2500 income and expenditure would be in the P&L account, but a set of abbreviated accounts has no P&L. You should be all right now.
I should simply get shot of the whole exercise Gerry. This data is only used for statistical purposes only.
You did enter the 1 quid as a debtor and the 1000 as a long term creditor? If you did this the account would balance and furthermore be correct and should go through on the nod!
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Thank you for your support.
Delighted to have been of assistance.