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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5142
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have to submit a Micro-entity Balance Sheet to Companies

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I have to submit a Micro-entity Balance Sheet to Companies House. The company is a resident's association that looks after the maintenance of a small block of flats. The only transactions are the landlords putting money into a company account to pay maintenance bills.
The only change over the year has been the level of the company bank balance. How do I enter that into Companies House web filling page: please?
Stephen Everett
Hello and welcome to the site. Thank you for your question.

Please advise if this is your first return to Companies House?
If not, please advise what was submitted to Companies House in the previous year?
DO you have a balance sheet for last year?

Many thanks
Customer: replied 2 years ago.

I have filed dormant company accounts until now. The company used a bank account from 2013 so I assumed it would be a micro-entity now.

Stephen, thank you fo ryour prompt reply..

You have not stated whether there is any called up share capital...

I would be inclined to file abbreviated balance sheet at Companies House instead of micro-entity accounts (my preference as a professional).

Your entries to reflect movement on bank account should be as follows:
Monies put into bank account to pay for maintenance bills should be
Dr - bank account in current assets
Cr - maintenance charges control account within creditors due within one year

Settlement of maintenace bills would result in
Dr - maintenance charges control account within creditors
Cr - bank account

equal and opposite entries to complete double entry.

Any monies left in the bank account would balance with amount sitting in maintenance charges control account.

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 2 years ago.

There is no maintenance charges control account separate from the company current account. Why not use micro-entity status please?

The company issued five £1 shares at inception, one for each flat in the block. Is this called up share capital?

Stephen, thank you for your reply.

Maintenance charges control account is like a supplier's account..
Under normal trading, when one gets a bill from a supplier, you
Debit - an expense account in the profit & loss account with the costs
Credit - suppliers' control in the balance sheet to recognise a liability

When that bill is settled you
Debit - suppliers' control
Credit - Bank current account

The same concept applies to your scenario but in this case
both the cash coming in to pay for maintenance costs and settlement of the bills are entered in this control account within the balance sheet.

The shares issued at inception are called up share capital.

Micro-entity accounts are okay for Companies House but if you were to use these accounts to file CT600 return using HMRC software then there are some glitches.

I hope this is helpful and answers your question.
Customer: replied 2 years ago.

Thanks for that but I'm no wiser on how to fill out the Micro-entity Balance Sheet. The accounts are really simple. The company account had a £500 opening balance at the start of the reporting year, payments from shareholders of £5,475 into that account and bills paid totalling £1,554 came out of it. The end of year balance being £4,421.

I just need to know which boxes to put those figures in out of:

- "Total fixed assets" (the £5 of shares?)

- "Total current assets" (the £4,421 bank balance at end of period?)

- "Prepayments and accrued income" (the £5,475 income from payments?)

- "Creditors: amounts falling due within one year" (the £1,554 bills paid that year?)

- "Net current assets (liabilities)" (same as "Total current assets"?)

- "Accruals and deferred income" (same as "Total current assets"?)

To fill in the Companies House form as quickly as possible as I am already overdue.

Many Thanks

Stephen Everett

Stephen, thank you for your reply.

I will revert to you with some figures later tonight.

Can you possibly give me the figures you had entered in last year's balance sheet.

Many thanks

Stephen, attached is your Micro-entity balance sheet for your perusal and filing. and other Tax Specialists are ready to help you
I thank you for accepting my answer.

Your reward of a generous bonus is greatly appreciated.

Best wishes.