Negative balance sheet in first year?

[JoelGrimes]

I understand all balance sheets must balance but cannot see where I am going wrong here.

Called up share capital not paid: 0

Fixed assets
- Intangible assets: 0
- Tangible assets: 0
- Investments: 0
Total fixed assets: 0

Current assets
- Stocks: 799
- Debtors: 0
- Prepayments (stock not yet received): 5787
- Cash at bank and in hand: 8
Total current assets: 6594

Prepayments and accrued income: 0

Creditors: amounts falling due within one year (director loans): £-6661
Net current assets (liabilities): £-6661
Total assets less current liabilities: £-67

Creditors: amounts falling due after more than one year: 0
Provisions for liabilities: 0
Accruals and deferred income: 0

Total net assets (liabilities): £-67

Capital and reserves:
- Called up share capital: please help on this, two shares issued at £1 each


Please help me balance the sheet if possible?

Company was in first year of trading and operated at a loss. I am filing under microentity and there is, no option for profit loss input.

 

[JoelGrimes]

does capital and reserves look need the figure from the profit/loss sheet?

 

[GraemeL]

Have you sold anything? Did you make a loss on the sales?

 

[Anna Chandley]

I believe that on the Companies House Micro entity accounts template you enter the accumulated losses in the shareholders funds section.

 

[JoelGrimes]

Have you sold anything? Did you make a loss on the sales?

yes we have 5k in sales, 9k in business costs. so -4k p/l. the bulk of the costs include stock purchase that is yet to be received. Which I have written in prepayments assets section.

I believe that on the Companies House Micro entity accounts template you enter the accumulated losses in the shareholders funds section.

Do I add £2 to the -4k p/l figure? LTD has two shares at £1 each. I understand the losses are the reserves and the capital is the shares?

 

[JoelGrimes]

p/l is -7425. with share capital at £2 total capital and shares section is -£7423

Total net assets (liabilities) is -£67

I have written a note in the guarantee section that the directors will continue to provide sufficient finance. I wrote this to avoid concern for insolvency.

The company is turning over a profit already due to the foundations and purchases laid down in this balance sheet/account year.

Will this be okay to submit to companies house? I'd appreciate a quick response from anyone who knows the answer, as accounts due soon.

Many thanks for all help so far.

 

[Scalloway]

the bulk of the costs include stock purchase that is yet to be received. Which I have written in prepayments assets section.

#

Payments and prepayments for stock are not costs in the P & L, they just go on the balance sheet.

 

[JoelGrimes]

#

Payments and prepayments for stock are not costs in the P & L, they just go on the balance sheet.

I understand part of this, do I put the cost of goods sold only then? And remove the value of stock not sold and prepayments for stock.

 

[Scalloway]

do I put the cost of goods sold only then?

Yes.

And remove the value of stock not sold and prepayments for stock.

They only appear on the Balance Sheet.

This is a graphic I did for preparing simple accounts

https://imgur.com/gallery/CPfENkC