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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5116
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

Sam, It's the second year of trading, and I am completing

Customer Question

Hi Sam,
It's the second year of trading, and I am completing the CT600 for the second year, but cannot get AC187 to balance.
Current year and Last years figures so far are:
AC12 £82561 AC13 £81447
AC14 £2608 AC15 1055
AC16 £79953 AC17 £80392
AC20 £23819 AC21 £21273
AC26 £56134 AC27 £59119
AC32 £56134 AC33 £59119
AC36 £43784 AC37 £47516
AC38 £15823 AC39 £0
AC40 £27961 AC41 £47516
AC44 £1500 AC45 £2000
AC48 £1500 AC49 £2000
AC54 £56727 AC55 £59017
AC58 £14441 AC59 £13500
AC60 £42286 AC61 £45516
AC62 £43786 AC63 £47516
AC70 £1 AC71 £1
AC74 £43785 AC75 £47515
AC80 £43786 AC81 £47516
AC146 £2091 AC147 £550
AC148 £12350 AC149 £12003
AC152 £0 AC153 £947
AC154 £14441 AC155 £13500
AC215 £0
AC216 £47516
AC184 £47516
AC185 £43784
AC186 £15823
Please can you review these figures and see where I'm going wrong.
Thankyou Kez
Submitted: 2 years ago.
Category: Tax
Expert: replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

I am another UK Tax expert on this site.
I will review your figures and revert to you later this evening with my findings.

Many thanks
Customer: replied 2 years ago.

Thank you,

Your quick response is very much appreciated. Look forward to your findings.

Many thanks


Expert: replied 2 years ago.
Kez, thank you for your reply.

I have reviewed your figures and have comments as follows:

Last year was year one of operation. You made a profit after tax of £47,516 (AC41) and had cash at bank and in hand £59,017.

Year two has generated profit after tax and dividends £27,961 (AC40) yet you are showing a reduction in cash balances. The balance at year end is £56,727 (AC54) whilst the level of creditors is similar to previous year end.
Did you have debtors at the year end that are not reflected in the balance sheet (AC52)?
There is a difference of £31,692 between Total net assets (AC68) and Total shareholders funds (AC80).

I would like you to revisit the balances making current assets at end of year two.

Profit and loss account at end of year two should read £75,477 (AC74) and will equal retained profit as shown on Statutory Notes accounts (AC187).

Here is my version of your accounts
PROFIT AND LOSS Box No. This year Box No. Last year
profit or (loss) on ordinary activities before taxation AC32 56,134 AC33 59,119
tax on profit or loss on ordinary activities AC34 12,350 AC35 11,603
profit or (loss) for the financial year AC36 43,784 AC37 47,516
dividends for the period AC38 15,823 AC39 0
net balance for the financial period transferred to reserves AC40 27,961 AC41 47,516
BALANCE SHEET Box No. This year Box No. Last year
intangible assets AC42 0 AC43 0
tangible assets AC44 1,500 AC45 2,000
TOTAL FIXED ASSETS AC48 1,500 AC49 2,000
stocks AC50 0 AC51 0
debtors AC52 0 AC53 0
cash at bank and in hand AC54 56,727 AC55 59,017
TOTAL CURRENT ASSETS AC56 56,727 AC57 59,017
creditors due within one year AC58 14,441 AC59 13,500
NET CURRENT ASSETS AC60 42,286 AC61 45,517
TOTAL NET ASSETS AC68 43,786 AC69 47,517
CAPITAL AND RESERVES Box No. This year Box No. Last year
called up share capital AC70 1 AC71 1
profit and loss account AC74 75,477 AC75 47,516
Difference xxxx -31,692 xxxx 0
STATUTORY ACCOUNTS NOTES Box No. This year Box No. Last year
profit and loss - opening balance AC184 47,516 AC215 0
profit for the period AC185 43,784 AC216 47,516
equity dividends paid AC186 15,823 AC217 0
retained profit AC187 75,477 AC218 47,516

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.

Expert: replied 2 years ago.

Hello Kez

I notice you have viewed my response to your question about CT600 Return and getting AC187 to balance (JACUSTOMER-ywqp3r2e- Last Viewed on 08/04/2015 at 21:35).

I am just checking to see if you have any issues relating to your question that I may not have addressed. Please let me know if I can be of further assistance.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.