Second year - micro entity accounts - Help please

[AnnaHese]

Hello Smart Accounting People,

I am doing our 2nd year micro entity accounts and I am not sure if I can get my books to balance : {

Original Share Capital 10000
Share Capital Increase of 6301 (which I have put into other income on the income statement)

With a total P&L of 5497 (6301 - 804 (operational loss))

Capital reserves from previous year 2602

So my balance sheet looks as follows:

Current Assets: 5497 (P&L) + 2602 (from 2018 reserves) = 8099

Capital and Reserves: 16301 - 5497 = 10804

Any help? Many thanks in advance

 

[Scalloway]

How do you prepare your accounts? Do you have a cash book or use accounting software?

 

[AnnaHese]

How do you prepare your accounts? Do you have a cash book or use accounting software?

we use a cash book, I would like to change to an accounting software for next year but haven’t gotten around to it yet

 

[Scalloway]

Share Capital Increase of 6301 (which I have put into other income on the income statement)

Why is this other income? Share Capital does not go through the P & L.

 

[MyAccountantOnline]

Hello Smart Accounting People,

I am doing our 2nd year micro entity accounts and I am not sure if I can get my books to balance : {

Original Share Capital 10000
Share Capital Increase of 6301 (which I have put into other income on the income statement)

With a total P&L of 5497 (6301 - 804 (operational loss))

Capital reserves from previous year 2602

So my balance sheet looks as follows:

Current Assets: 5497 (P&L) + 2602 (from 2018 reserves) = 8099

Capital and Reserves: 16301 - 5497 = 10804

Any help? Many thanks in advance

My advice is to enter your data into something like VT cashbook (which is free) and create a trial balance to use, rather than trying to work from a cashbook.

There isnt enough information to tell you whats wrong but certainly the P&L shouldnt be in current assets and the increase in share capital is unusual.

 

[CA85]

Based on what you have told us:

Current assets £8,099 (2,602+6,301-804)

Share Cap £16,301 (10,000+6,301)
P&L Reserve (£8,202) (7,398+804 loss)
= £8,099

Increasing the share capital does not affect the P&L. Why have you issued more shares? Any cash injection could have just gone in as a directors loan (creditor on balance sheet).