Quick Balance Sheet Question

[Matty Jay]

Hi guys,

Sorry to keep innundating the forums of late with tax return questions!

I'm just trying to complete the summary of the balance sheet for the partnership accounting period for HMRC and am unsure as to what to file under liabilities.

In assets I've filed the £150 left sat in the bank at the end of the tax year. But for liabilities the only amount I can see that could be filed here is the amount that myself and my partner invested (and lost) in the business out of our own pockets (approx £1000). Otherwise 'Trade Creditors/Accruals' (we owed no suppliers), 'Loans and overdrawn bank accounts' (again never took out a loan or overdraft). Should I just put this figure in the 'Other liabilities' box? Not sure if that's right though....

This would then make our net business assets -£850. Is that correct?

This forum is always a brilliant resource so thanks again and any help is appreciated!

Matty

 

[faradaykeynes]

your balance sheet should balance , if you have current assets of 150 and no liabilities then other side should be capital/profit&drawing and there net movement should be 150

 

[SBlundell]

there net movement should be 150

Balance not movement.

Maybe Capital introduced £1,000 less loss for the year of £850 = Net Capital £150. I.e. you started with £1,000 you introduced into the bank a year ago & to date you've spent £850 more expenditure than you turned around in income (hence loss).

Matty - you've said net business assets are £150 (only asset less no liabilities. Capital you & your partner have introduced is just that - capital not a liability).

Obviously the problem is we don't know the full picture...

 

[elaine@cheapaccounting]

The clue is that the balance sheet should balance

Afraid that there is not enough info in the post to determine where you have gone wrong.

The entries in the accounts are as a result of double entry (hence why they balance) - but you have only given one side of the transaction and not a complete list.

 

[elaine@cheapaccounting]

if you have current assets of 150 and no liabilities then other side should be capital/profit&drawing and there net movement should be 150

Assets of £150 no liabilities then Capital will be £150

Net movement implies a move between year which is not the same at all

 

[MyAccountantOnline]

Hi guys,

Sorry to keep innundating the forums of late with tax return questions!

I'm just trying to complete the summary of the balance sheet for the partnership accounting period for HMRC and am unsure as to what to file under liabilities.

In assets I've filed the £150 left sat in the bank at the end of the tax year. But for liabilities the only amount I can see that could be filed here is the amount that myself and my partner invested (and lost) in the business out of our own pockets (approx £1000). Otherwise 'Trade Creditors/Accruals' (we owed no suppliers), 'Loans and overdrawn bank accounts' (again never took out a loan or overdraft). Should I just put this figure in the 'Other liabilities' box? Not sure if that's right though....

This would then make our net business assets -£850. Is that correct?

This forum is always a brilliant resource so thanks again and any help is appreciated!

Matty

Hi Matty

As Elaine says we cant help with so little information.

Do you use an accounting/bookkeeping package which will produce a balance sheet for you - most will even some of the free packages.