Micro Entity First Accounts - Please Help

[AnnaHese]

Hi everyone,
I am working on filing our first set of accounts, but unfortunately I just can't wrap my head around the Balance Sheet.

Anybody out there happy to help? I am sure its probably not that difficult but I just don't get it.
Figures look as follows.

Original equity put in: 10,000
Turnover: 648
Money spent on materials: 3,195
Other costs (start-up etc.): 4,581
Remaining cash: 2602

No outstanding liabilities.

I just can't get the balance sheet to balance. Anyone willing to help? I would be forever grateful!

Thanks, Anna

 

[MyAccountantOnline]

Have you possibly transposed a figure as your difference is divisible by 9?

If not look the remaining cash it's wrong if your income and expenses are correct.

Don't forget to add in the share(s) too.

 

[CriticalThinker]

It looks like your 'other costs' should be £4,851 not £4,581. I make this assumption based on the following:

Money put into bank £10,000
Expenditure paid for (£3,195)
(£4,851)

Cash in bank at YE £2,602

*if the expenses of £4,581 were correct then your cash at bank figure, like Nicola suggests, is wrong or you're missing some transactions? The difference of £270 is also a give away for a transposition error...accountants minds hey Nicola!?!

The above change would then give you a simple balance sheet of (and I presume capital is unpaid!)

Cash £2,602

Liabilities (DLA) (£9,900) this is the money you put into the business as a Director £10k
less unpaid share capital (£100)
Net liabilities (£7,298)

Retained Earnings (£7,398) Ie. your loss for the year
Share capital 100

Equity & reserves (£7,298)

*Assumed shares have a nominal value of £100 though you can substitute the figure 'Share Capital' and 'Liabilties: DLA' with the true figure and you're BS will still balance

Hope that helps !

 

[MyAccountantOnline]

... like Nicola suggests, is wrong or you're missing some transactions? The difference of £270 is also a give away for a transposition error...accountants minds hey Nicola!?!

....

Absolutely that £270 was a giveaway....it comes from years of doing bank reconciliations as a traineee many many years ago

 

[AnnaHese]

Thank you so much! Yes, it was indeed a transpositional error. This really helps a lot!!! Just one more question - my non accountical mind does not quite understand. Isn't the GBP 10,000 I put in the share capital? And where does the share capital 100 come from? Thanks so much

 

[MyAccountantOnline]

Thank you so much! Yes, it was indeed a transpositional error. This really helps a lot!!! Just one more question - my non accountical mind does not quite understand. Isn't the GBP 10,000 I put in the share capital? And where does the share capital 100 come from? Thanks so much

The £100 was a guess by White Space - it's generally £1 or £100 for most small companies.

How many shares do you actually have and what did they cost?

 

[AnnaHese]

The shares are £1 each. But then the share capital would be £1? Would it not be 10,000 if we put the full amount in? Sorry, probably a very stupid question

 

[MyAccountantOnline]

The shares are £1 each. But then the share capital would be £1? Would it not be 10,000 if we put the full amount in? Sorry, probably a very stupid question

If you have one £1 share which you paid for and deposited £10,000 the £9,999 would generally be a directors loan.

 

[AnnaHese]

No the company has 10,000 shares, which are split between me and my business partner and we have each put in the full amount

 

[MyAccountantOnline]

No the company has 10,000 shares, which are split between me and my business partner and we have each put in the full amount

In that case if its 10,000 £1 shares it'll be share capital in the accounts.

 

[AnnaHese]

Ok thanks. Just to clarify:
Current Assets: 2602

Current liabilities: 10,000 (the share capital)

Net Liabilities: (7,398)

Equity and Reserves: (7,398)

Correct?

 

[Scalloway]

No

Current Assets: ...................2602
TOTAL......................................2602

Share capital: .....................10,000
Profit and Loss Account: (7,398)
Equity and Reserves: ..........2602

 

[AnnaHese]

I can not thank you enough!!! Really a great help. Have a lovely weekend. Best Anna

 

[dal]

You didn't seem to have any problems understanding their dialogue boxes. I just can't make head nor tail of it.

 

[Scalloway]

You didn't seem to have any problems understanding their dialogue boxes. I just can't make head nor tail of it.

Have you drafted up a set of accounts for inputting?

 

[dal]

Hi Scalloway, I have (well tried to), I won't hijack this thread though.