Company Accounts Help

[Harry H]

Hi

I'm trying to get to learn a bit about Company Accounts for my new Ltd Company.

If anyone could reply to the below it would be a big help.

:)

1) In my balance sheet for Company's House is it ok to show the share capital as zero? And in accounting is it actually possible to have zero share capital??

2) How can a balance sheet balance when the fixed asset values are not the real costs (ie. the net book value) of what you actually paid from your reserves?

3) Do the owners personal loans show up in liabilities?

4) Is it common practice to make your balance sheet balance using magic?

5) Do your previous years profits/losses show up in your next years Profit and Loss sheet? or in your balance sheet?

[Alpha]

1) In my balance sheet for Company's House is it ok to show the share capital as zero? And in accounting is it actually possible to have zero share capital??

No it is not possible to have zero share capital

2) How can a balance sheet balance when the fixed asset values are not the real costs (ie. the net book value) of what you actually paid from your reserves?

Because in book keeping every item has an opposite entry no matter what entries you make.

3) Do the owners personal loans show up in liabilities?

Yes unless the full balance on the directors loan account is a debit balance in which case they are hidden in Assets.

4) Is it common practice to make your balance sheet balance using magic?

Not sure where you get this idea from Accountants are not members of the magic circle

5) Do your previous years profits/losses show up in your next years Profit and Loss sheet? or in your balance sheet?

They are shown in the balance sheet.


In the light of these questions please do not attempt to do any limited company accounts :D :D :D

[Joyous]

3) Do the owners personal loans show up in liabilities?



If you're talking about loans that you have taken from a third party then they should not show up on the company's balance sheet at all. You and you company are separate legal entities and as such are responsible for your own debts.

Regards

Joy

[Harry H]

Thanks for your help :)

I've got my spreadsheet model to almost balance now so I think I have at least a basic understanding of how it all fits together.

I appreciate I am no expert though! but its going to be useful when I have a meeting with an accountant.

[Alpha]

Why don't you consider working with an accountant of the forums such as Joy.

If you are putting your accounts together using a spreadsheet it is very easy to send that to an accountant and all the advise that you need can be done via e-mail, telephone etc.

And you never know it may be cheaper as well :)