Virtually blank balance sheet

[G.H.]

Hi,

I created a ltd company in the UK (I am Belgian) in 2006. The business never really developped and I ended up doing about 5 straightforward trades, generating a huge profit of a few hundreds pounds .
The company has an authorised capital of a few thousand pounds but it has never been paid up. It had/has absolutely no assets (or liabilities), I did not even have the time to buy a mobile phone or laptop before the business virtually stopped.

Could someone confirm that the balance sheet I need to submit to Companies House will be.... blank (just have a very basic PnL account then) ? Is this possible ?

Thanks a lot

 

[Anna Chandley]

GH
The balance will show issued share capital (on the bottom half ) even if it hasn't been paid. The top half will be shareholders loan equal to the issued share capital.

The balance sheet will also need to include balance sheet approval statements which include a statement claiming audit exemption - standard wording should be available from companies house.

The reason for including unpaid share capital is that the shareholders liability in the event of a third party claim is the amount of unpaid share capital.

 

[G.H.]

The top half will be shareholders loan equal to the issued share capital.

[uote]

Many thanks Anna, it makes sense indeed. Issued shared capital on the bottom half is straightforward but how/where do I mention the shareholders loan in the top half ? Do I have to mention it as such (i.e. "shareholders loan") in the liabilities/creditors somewhere ?

Thanks again !!!

 

[Jenni384]

E.g.

Bottom Half:
Issued Share Capital £100

Top Half:
Other Debtors: £100

Note that the Issued Share Capital may differ from the total amount of 'Authorised' share capital. Refer back to your Mem & Arts of Association to confirm who was issued how many shares and how much for.

 

[G.H.]

Thanks Jenni, will double check our Mem and Arts of Association, I am pretty sure that authorised capital = issued capital.

But if I understand correctly, I do not have to mention that the capital (or at least part of it) has not been paid up yet :| . Do I have to mention it in the notes then ?

Thanks again

 

[CassioAcc]

In the top half of the balance sheet you can show an item
"Called Up Share Capital Not Paid"

 

[G.H.]

A very last: our authorised capital is denominated in EUR, can I just keep it in eur in my balance sheet and mention it in the notes ? Thanks again

 

[Jaydee]

our authorised capital is denominated in EUR

Oh joy! I thought that only happened in exam questions!

I would say that the balance sheet (and issued share capital) needs to be translated into GBP but the authorised capital note may stay in EUR.

That seems logical, but I may be wrong.

 

[G.H.]

Unless otherwise advised, I understand that I need to translate the EUR amount of issued capital into GBP for the balance sheet and state in the notes that "Monetary assets and liabilities denominated in foreign currencies are translated at the change of exchange ruling at the balance sheet date".
Does that make sense ?

 

[Jaydee]

"Monetary assets and liabilities denominated in foreign currencies are translated at the change of exchange ruling at the balance sheet date". Does that make sense?

Yes, but replace "change" with "rate"

 

[Jenni384]

Since the OP seems to have his question answered, let me digress slightly by saying...

Oh joy! I thought that only happened in exam questions!

Haha! Made me grin