F
Friesianhorse
- Original Poster
- #1
Ok so here goes with another thread for you all and hopefully some of you may be able to shed a bit of light on the matter for me.
I am doing my year end books for my first year of trading in my Ltd comapny.
I have been paying for expenses and stock...everything out of my own personal money (with the exception of the total amount of sales i received which went straight in to pay towards running costs). For example the company spent £3000 on running costs and stock etc and my sales were £1000 so the amount I lent to the company is £2000 (that's how i worked it out as i only just found out the existence of a directors loan account!) over the course of the year. This much i know but here's where i get lost...
...Where and how do i account for it in both my cashflow and balance sheet (and P&L if it has any place there) so that eventually when everything takes off as it should that I can take it back without interest when funds permit? I did not charge my company interest to borrow the money. Was starting to wonder if to just put it in as owner fund in the equity part of the balance sheet and 'proceeds from owners in finance activities in my cashflow sheet but I am not sure how i take it back out later without getting taxed on it then hence wanting to do it as a loan.
On my cashflow do i put it in operations activities as income of £2000 from creditors and then detail the fact the company owes this to me in financial activities as £2000 increased long term debt or do i not need to put it in any which one of these?
My cashflow either ends up as zero or in the minus depending on what i do which is fine as i know I made a loss on my first year as was expected. However this is not making it easy to fill out my balance sheet.
My balance sheet is not balancing so i know I have obviously cocked up somehow with this whole director loan thing. When i put the £2000 in liabilities as director loan and my equity of my minimum share of £1 my total assets are coming out as less than my liabilities and equity(I am primitive and using excel spread sheets and cannot afford an accountant since it is my first year trading and I obviously made a loss as a company as that's why i have been paying for everything out of my personal money). Any ideas on how I do this caveman style as I am really quite stuck!
Ps I am so sorry for the novel question the answer to which is probably staring me in the face and I am so grateful for any help in advance
Its gone 1am and the whole thing is really taxing my brain!
I am doing my year end books for my first year of trading in my Ltd comapny.
I have been paying for expenses and stock...everything out of my own personal money (with the exception of the total amount of sales i received which went straight in to pay towards running costs). For example the company spent £3000 on running costs and stock etc and my sales were £1000 so the amount I lent to the company is £2000 (that's how i worked it out as i only just found out the existence of a directors loan account!) over the course of the year. This much i know but here's where i get lost...
...Where and how do i account for it in both my cashflow and balance sheet (and P&L if it has any place there) so that eventually when everything takes off as it should that I can take it back without interest when funds permit? I did not charge my company interest to borrow the money. Was starting to wonder if to just put it in as owner fund in the equity part of the balance sheet and 'proceeds from owners in finance activities in my cashflow sheet but I am not sure how i take it back out later without getting taxed on it then hence wanting to do it as a loan.
On my cashflow do i put it in operations activities as income of £2000 from creditors and then detail the fact the company owes this to me in financial activities as £2000 increased long term debt or do i not need to put it in any which one of these?
My cashflow either ends up as zero or in the minus depending on what i do which is fine as i know I made a loss on my first year as was expected. However this is not making it easy to fill out my balance sheet.
My balance sheet is not balancing so i know I have obviously cocked up somehow with this whole director loan thing. When i put the £2000 in liabilities as director loan and my equity of my minimum share of £1 my total assets are coming out as less than my liabilities and equity(I am primitive and using excel spread sheets and cannot afford an accountant since it is my first year trading and I obviously made a loss as a company as that's why i have been paying for everything out of my personal money). Any ideas on how I do this caveman style as I am really quite stuck!
Ps I am so sorry for the novel question the answer to which is probably staring me in the face and I am so grateful for any help in advance
Its gone 1am and the whole thing is really taxing my brain!
