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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I need advice on a projected balance sheet

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I need advice on a projected balance sheet
Hello and welcome to the site. Thank you for your question.

Please expand on your question and I will help you.

Many thanks
Customer: replied 3 years ago.

I have done some projected balance sheets, but I do not know how to allocate the previous years profit...


I attach the balance sheet and the P&L. The problem is for the year end projection 2013.

Attachment: 2014-05-22_080921_bs_1_april.xlsx

Attachment: 2014-05-22_081002_pl_1_april.xlsx

Ryan, thank you for your reply and the spreadsheets,

Please explain to me why you are showing in the balance sheet for y/e 31 Dec 2012, profit and loss figure of 99,567.

if 2011 was year 1 and the profit and loss showed £20,577, then for year 2 the cumulative profit & loss figure would be (20,577+100,675) = 121,252.

Please clarify and we will resolve the issue.

Many thanks
Customer: replied 3 years ago.

I'm not sure... that is why I'm confused. Perhaps the accountant declared the profit as a dividend for the 2011 figures? Would that make sense ? Therefore the profit would not be carried forward?

But generally speaking the profit should be carried forward in the balance sheet? This is the bit I am confused about.... I'm not sure if it should be added into the next years P&L in the BS or not.... (I am quite ignorant with all this bits)

Ryan, thank you fo ryour reply.

You say the accountant might have shown dividends declared equivalent to profit...
DO you have a copy of the last set of acounts filed with HMRC to cover year ended 31 Dec 2012 as these accounts would also show a comparitive for 2011.

Also, you should be making a provision for corporation tax in your projected accounts to reflect profit after tax and fair representation of company performance.

Many thanks
Customer: replied 3 years ago.

Hi. many thanks. See att

Attachment: 2014-05-22_083453_accounts_hla_london_2012.pdf

ached 2012 accounts

Ryan, thank you for your reply...

I will make a provision for CT .. no dividends were paid in previous years.
I will prepare a projected draft balance sheet for y/e 31 Dec 2013 and revert yto you shortly.

Many thanks
Customer: replied 3 years ago.

Excellent, many thanks.

Ryan, here are a projected draft balance sheet as at 31 Dec 2013.

Points for your consideration...

I have made a provision for CT at 20% of the profit before tax (ignoring adjustments for depreciation and capital allowances).

I have reduced the director's account by 80,835 (equivalent to the profit after tax for y/e 31 Dec 2012 to make the balance sheet agree. This would also tie with the bank balance movement being shown for y/e 31 Dec 2013 reflecting a reduction in bank balance from previous year.

Position as at 31-Dec-11 31-Dec-12 31-Dec-13
Tangible Assets 2006 5625 32530
Stock 43845 107000 266200
Debtors 246795 418382 496964
Cash at bank nil 97427 nil
TOTAL CURRENT ASSETS 290640 622809 763164
Taxation 18149 17755 13063
Trade creditors 114577 160902 47317
Directors current account 13136 82728 187893
Factor 16540 209815 307518
Corporation tax provision 0 0 21300
Bank overdraft 26000 0 15630
TOTAL CURRENT LIABILITIES 188402 471200 592721
NET CURRENT ASSETS 102238 151609 170443
TOTAL ASSETS 104244 157234 202973
CREDITORS (amounts due after 1 year) 82667 56667 35833
TOTAL NET ASSETS 21577 100567 167140
Called up Share Capital 1000 1000 1000
Profit and Loss Account 18732 99567 166140
Shareholders' funds 19732 100567 167140
Profit and loss account
Profit before tax 20577 100675 106605
Taxation 5500 19840 21300
Profit and loss account - retained 15077 80835 85305
Profit and loss account - cumulative 18732 99567 166140

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. and other Tax Specialists are ready to help you
I thank you for accepting my answer.

Best wishes.
Customer: replied 3 years ago.

Many thanks. Your help is hugely appreciated. I am sure I will be in touch for more assistance in the future.

Ryan, thank you for your good words.

If you wish me to help you, please request that this be answered by in the body of your question.

Many thanks
Customer: replied 3 years ago.



Hello. You helped me on Just Answer with some balance sheet queries. I need some additional help from you with cashflow, and balance sheet projections. Could you help?

Ryan, thank you for your reply.

I am happy to help you and request you to put a new question as per JustAnswer rules.
You can request that I answer the question by mentioning it in the main body of your question..

Many thanks
Customer: replied 3 years ago.

Hello I asked a question on Justanswer requesting your help with it. Are you available to assist?