I am just wondering why my software has recorded my start up capital for my Ltd in my P&L? I thought it's only earned income from operating activities that should be reflected in the P&L?
Should start up capital not be purely kept on the balance sheet?
Dr Start Up Capital (Asset)
Cr Directors Loan Account (Liability)
I've just noticed this and I appear to have treated it incorrectly on my HMRC accounts for 14/15 and have effectively understated my losses. How would you suggest I correct this? Just post a correction in my 15/16 accounts?
You'll need to check back on the software to see the double entry that was made, but it sounds to me like you've* allocated capital to an income category rather than the DLA. As Johnny says, it should be DR Bank CR DLA.
Johnny, it very much looks like the Company's loss for that year is less due to the error, so correcting the error will increase his loss, ergo no penalty to pay.
* like Joanne, I'm curious as to which software you used, for reasons that may become apparent once we know.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
OMG...these responses tell me so much about some of the types of individuals who operate on this forum. Clearly I am not a professional bookkeeper otherwise I would not be asking for advice. Insults and patronizing comments add no value to anyone apart from perhaps inflating your own ego's. Johnny you really should read the posts properly before being replying as John has pointed out. I also don't know what terminology you felt you had to ignore???
Joanne - are you saying this stuff is impossible to learn why should I pay someone to do my accounts for me that's just lazy and I've learned a tonne already and this was my first stab at prepping accounts for an LTD. Also Joanne I am not blaming the software for anything. I dislike the word blame and dislike the 'blame' culture mentality.
I am stunned that none of you know me personally and yet you feel it is acceptable to be so rude! With the exception of John!!
If you look at my original post what I have done is identified a problem with the software and recognized it myself so clearly I a actually have a good understanding but am lacking a little confidence (perhaps a symptom of utilizing this forum and being made out to be stupid each time I ask a question).
Also Joanne - I did seek professional advice from an accountant showed him everything I achieved and talked through my thought process with regards to the accounting issues and his advice was - STOP USING THE FORUM!
Shame on me for not listening to him! Shame on you lot for being such condescending, patronizing bullies....with the exception of John.
John - thank you for your reply I hadn't spotted that the software had included a balance sheet item in the P&L yes....I'm using Solar Accounts.
I won't be using this forum again as I am now finding it too stressful and it no longer provides the value it once did. Such a shame as it used to be a fantastic resource with tonnes of helpful users.
Oh pull the bully card - OMG, so pathetic! So his Accountant says stop using the forum and thats 'good advice' but when Accountants on here say it its bullying!!
One less freeloader, whom I have helped a few times in the past! Oh how they forget!
But typical business owner - complain when they hear something they dont like.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
OMG...these responses tell me so much about some of the types of individuals who operate on this forum.
The individuals concerned do not operate the forum. They are respected and highly skilled contributors. I am the closest that you will get on here at the moment to an operator of the forum and I do not take kindly to attacks on Joanne or Johnny who over a long period of time have gone out of their way to help you.
Clearly I am not a professional bookkeeper otherwise I would not be asking for advice.
But you have been on here for five years. You could have acquired a decent financial qualification during that time.
Insults and patronizing comments add no value to anyone apart from perhaps inflating your own ego's.
Their ego's don't need inflating, they know what they are talking about. Note Joanne has won bookkeeper of the year... Twice. That doesn't happen by accident.
Johnny you really should read the posts properly before being replying as John has pointed out. I also don't know what terminology you felt you had to ignore???
There was nothing wrong with Johnny's post.
Joanne - are you saying this stuff is impossible to learn why should I pay someone to do my accounts for me that's just lazy and I've learned a tonne already and this was my first stab at prepping accounts for an LTD.
Nope, I would very much suggest that you learn it. However, if you do not wish to do not expect to take bread out of the mouths of contributors by expecting to get their advice for nothing. The site is here to help fellow bookkeepers improve their skillset in order to build their businesses, it is not here for business owners to circumvent the need for representation.
Also Joanne I am not blaming the software for anything. I dislike the word blame and dislike the 'blame' culture mentality.
You're going to need to become accustomed to it as HMRC are going to blame you.
I am stunned that none of you know me personally and yet you feel it is acceptable to be so rude!
You haven't seen us yet when we are being rude... Or you might have done as you've been around for a while... But if you have I doubt that you would have just posted that response.
With the exception of John!!
John. C- for effort. Must try harder.
If you look at my original post what I have done is identified a problem with the software and recognized it myself so clearly I a actually have a good understanding but am lacking a little confidence (perhaps a symptom of utilizing this forum and being made out to be stupid each time I ask a question).
Which you recognised a year after filing. Not when you were inputing the data.
Also Joanne - I did seek professional advice from an accountant. showed him everything I achieved and talked through my thought process with regards to the accounting issues
So why was he not doing your accounts?
and his advice was - STOP USING THE FORUM!
Ah, I suspect that he meant stop trying to do it yourself and let me sort your books out.
Shame on me for not listening to him!
Quite. Stop trying to do it yourself and take everything to that accountant to sort out for you.
Shame on you lot for being such condescending, patronizing bullies....
Love the way that you get years of free help from us but then decide that we're bullies.
with the exception of John.
As I say, he's got to try harder.
John - thank you for your reply I hadn't spotted that the software had included a balance sheet item in the P&L yes....I'm using Solar Accounts.
You might have wanted to include in your initial question which software you were using.
I won't be using this forum again
Thats fine. You are however welcome to return once you have a financial qualification or are studying towards one.
as I am now finding it too stressful
And yet you run a business?
and it no longer provides the value it once did.
Really? I'm not seeing any deterioration in the quality or quantity of responses even though I know that all of the major contributors here are all very busy people.... Also, it is a free resource so what VFM has changed... Even if you get less free answers now than you did five years ago the answers are still free.... Although I'm now suspecting that leave or not you just burnt your bridges with the sites more prolific contributors.
Such a shame as it used to be a fantastic resource with tonnes of helpful users.
It's the lack of respect and attempting to get something for nothing that makes long term contributors such as myself not post as much now as I once did.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Shame on me for not listening to him! Shame on you lot for being such condescending, patronizing bullies....with the exception of John.
John - thank you for your reply I hadn't spotted that the software had included a balance sheet item in the P&L yes....I'm using Solar Accounts.
Neither of the other two replies were patronising or condescending. I suspected it was cloud software which sometimes chooses a category for you which can lead to errors. I'm not familiar with Solar accounts but out of curiosity I will download at the weekend and have a gander. I very much suspect it's operator error though.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
