Just to add a bit more info, this is the trial balance the balance sheet was produced from:
Trial balance Before adj's Current year Comparative Enter debits as + and credits as - [assets and expenses are debits] £ £ £
PROFIT AND LOSS ACCOUNT Turnover Sales -1,501 Cost of sales Purchases 672 Distribution costs Distribution costs 128 Motor expenses Entertaining 6 Use of home 379 General admin Telephone and fax 358 Postage Stationery and printing 180 Depreciation 27 Accountancy fees 360 Advertising and PR 100 Other legal and professional Equity dividends Years starting before 1/1/05 See P/L section of Balance Sheet
Retained (profit)/loss 0 709 0
BALANCE SHEET Cost - additions 134 Cost - disposals Depn - b/fwd Depn - provided in year -27 Depn - disposals Cash at bank Cash at bank 1,053 100 Accrued Accountancy Fees -360 Non-equity preference shares Directors Loan Account -409 Share capital B/fwd 0 Shares issued -100 -100 Shares redeemed Capital redemption reserve B/fwd 0 Capital Introduced -1,000 Profit and loss account B/fwd Equity dividends Trf to capital redemption reserve 0
Totals (all should be zero) 0 0 0
-- Edited by lor on Thursday 3rd of November 2011 11:41:45 AM
If the company was dormant in the prior year, then you should have some dormant accounts (or an AA02 form) that will tell you the balance sheet of the company.
The debit entry is going to be either (i) cash at bank and in hand or (ii) unpaid share capital.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
yes, thanks it is called up share cap not pd, I have last years dormant accounts. Thank you for your help. Have had a variety of new clients lately all different in some way!.
Sounds like you need to learn what your software can and cant do.
Havent used VT accounts for a limited company but would expect is just a case of changing one of the current asset headings to unpaid share capital or include it in other debtors?
Would be surprised if there isnt a category called unpaid share capital as this is a standard category under the Companies Act.
I now consider it unusual to see unpaid share capital especially since the 2006 company act. (Dare I say "old fashioned"!!! )
If the company issues £100 shares to its directors (or shareholders), the directors ior shareholders should pay for it. This should be by either paying the money into the bank account, or charging the directors or shareholder loan account, to be reimbursed to the company.
-- Edited by YLB-HO on Monday 7th of November 2011 03:58:37 AM
