Accounts for loss-making small company


R

Roland Burr

As a sideline I have a small business which has traded at a loss.

For the first set of accounts we submitted a basic BS as it hadn;t at
that time traded. Now it has traded and the next set of accounts are
[over]due. Given that it makes no money buit we don't wanbt to kill it
[yet!] we cannot justify getting the accounts done professionally - ie
turn a £400 loss into a £1500 one!

I am happy to knock up the abbreviated accounts to give to CoHo and
have a few templates to work from. However I have a few questions that
I would appreciate if someone could spare a moment to answer...

A business partner and I have kept it afloat by paying in some cash
without calling these share issues. In the first set of accounts there
was £500 cash injected showing as a Creditor falling due with a year.
This still sits in the company and we have added another £1000 making
the sum sitting there £1500. The P&L (not including the above of
course) shows a £428 loss.

Can someone clarify how this should appear on the BS - should the
Shareholders' Funds final total be -ve ?

Are there any specific notes that need to be attached ?

Do we even need to produce a formal P&L ?

Do we complete a Corporation Tax calculation/return in the normal way
?

Many thanks,
RB
 
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R

Roland Burr

Also, might it be better to show the cash injections as having been share issues ?

RB
 
T

Tony Bryer

Also, might it be better to show the cash injections as
having been share issues ?
If they are the OP won't be able to repay himself (easily)
once the company is solvent. Equally, if the money is shown as
a directors loan the company will be trading while insolvent
so the directors could be personally liable if anything goes
wrong.
 
J

Jonathan Bryce

Tony said:
If they are the OP won't be able to repay himself (easily)
once the company is solvent. Equally, if the money is shown as
a directors loan the company will be trading while insolvent
so the directors could be personally liable if anything goes
wrong.
Only if they are unable to pay the director's loan when it falls due. If
the terms of the loan are "pay it back when you can afford to", then it
won't be a problem.
 
R

Roland Burr

Thanks chaps, the latter seems preferable - are there any special
notes to the accounts that apply in these cases - can anyone point me
at an example of a similar set of accounts that I can use as a guide ?

I'd really like to get these things off my plate!

RB
 
R

Roland Burr

Any pointers ?

Thanks chaps, the latter seems preferable - are there any special
notes to the accounts that apply in these cases - can anyone point me
at an example of a similar set of accounts that I can use as a guide ?

I'd really like to get these things off my plate!

RB
 
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P

Peter Saxton

Any pointers ?
Go to the web sites of a few accountancy book suppliers and you should
be able to get what you are looking for there.
 

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