I know this must sound rediculous to just about everyone on this forum, so please excuse my ignorance, but if the definition of balanced accounts is "where your total assets match what you owe" How can that be the case if, for instance, you've got assets worth £10,000 but don't owe anything?
Hi?? Not a good time to ask a question with several hours left before the end of silly season for Accountants (and then we die of exhaustion!)
Can you add your first name so that it appears under the signature bar on your posts? Saves everyone looking it up each time!! (Edit profile --->signatures)
Perhaps you should put this into context - what is it you are trying to do.
So hows about an intro before we start. We always ask newbies! Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
If you have £10k of assets, what are the assets and how did you pay for them?
-- Edited by Cheshire on Wednesday 31st of January 2018 04:39:28 PM
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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
My first name is William, I can't see on this page a link to edit profiles but will search it out and do so later.
I'm an agronomist and not involved in bookkeeping or accountancy. I'm really just trying to answer my grandson's question on running an imaginary company.
The comany owns a work of art that they bought a year ago and has paid up shares that come to approx £10k but they don't owe anything at the moment.
Hi William
This is a forum for professionals to help other professionals and not for members of the public Im afraid and I wish I had the time to get into it on the last day of the tax season, or indeed any other.
Besides you didnt actually answer my question. Well ok you did as I know what Im doing. But I did suggest the answer - where did the cash come from to pay for the work of art?
A (on the bare bones of the information given) - the owners of the business, ie the shareholders. So they are owed the money.
Asset - work of art £10k, liability - share capital £10k.
Beyond that - Im afraid we cannot help you on here.
Depending on the age of your grandson there is some great useful information available from Accounting books- the library have them. Or try the first level of the ACCA-x course - as its free.
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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
