Preparing cessation accounts

James75

Free Member
Mar 22, 2016
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Small Ltd company that has been trading (unsuccessfully) for several years decided to stop trading 5 days before their year end 31/03. Unfortunately the MD has a large director's loan that will never be repaid.

So just wanted to check over a few items in preparing the cessation accounts to make sure we are doing this correctly!

The ARD cannot be extended so the accounts need to be prepared to that date. Although the accounts are made upto 31/03 do you amend the CT return date to reflect cessation of trade?

All the fixed assets except one were sold at MV in the days/weeks after cessation. The final asset was sold months later.

So should all the fixed assets be shown at MV in the accounts?

Should all the final expenses that were invoiced after the year end just be brought in as accruals into the accounts?

Do all the o/s creditors, paye, VAT and debtors at 31/03 just remain as liabilities/assets at that date? (i.e. they are all paid off in the following months but should still show as they were at the balance sheet date).

There was an outstanding finance agreement at 31/03 but this was finally paid off personally by the director 4 months after the year end. Would this still remain as a company creditor at 31/03? As the director paid this off in the next FY.

Thank you in advance for any clarity on this.
 

Scalloway

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Jun 6, 2010
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So should all the fixed assets be shown at MV in the accounts?

Should all the final expenses that were invoiced after the year end just be brought in as accruals into the accounts?

Do all the o/s creditors, paye, VAT and debtors at 31/03 just remain as liabilities/assets at that date? (i.e. they are all paid off in the following months but should still show as they were at the balance sheet date).

There was an outstanding finance agreement at 31/03 but this was finally paid off personally by the director 4 months after the year end. Would this still remain as a company creditor at 31/03? As the director paid this off in the next FY.

I would put them all at the value they were at 31 March.
 
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James75

Free Member
Mar 22, 2016
6
0
Any reason why it cant?

It was extended 4 years ago.

So we are looking up preparing accounts on the break up basis - so leave any creditors/debtors at their value as at 31 March. Hp agreement would also now become a current liability (it did have 3 years to run but was paid off)?

Just accrue in all late expenses to complete the p&l?
 
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