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Annual accounts preparation

Only for UK Tier 1 (Entrepreneur) points system

Moderators: Casa, JAJ, ca.funke, Amber, Zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, geriatrix, John, ChetanOjha, archigabe, push

jafersadeq
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Annual accounts preparation

Post by jafersadeq » Tue May 10, 2016 11:23 am

Dear members,

I am preparing my annual accounts, and I want to ask some questions to prepare the accounts according to HO requirements. The contents of the abbreviated au-audited accounts are:
1-Cover page
2-Company information
3-Chartered certified accountant’s report
4-Director’s report
5-Profit and Loss accounts
6-Gain and Losses
7-Abbreviated Balance sheet.
8-Notes to the abbreviated accounts.

I invested by Directors Loan 200K. I want to know the place I have to mention that I invested by director’s loan. Is it in the balance sheet OR in Notes of abbreviated accounts.

What shall I write to show that I used director’s loan. Please inform me the required paragraph should be written.

I did the loan as two instalments. Shall I mention that in the balance sheet?

I appreciate your answer,

Thanks a lot

Jafer

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Zimba
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Re: Annual accounts preparation

Post by Zimba » Tue May 10, 2016 11:28 am

It should show up in the notes in the accounts, something like
Unsecured Director's Loan from Mr XYZ 200,000
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jafersadeq
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Re: Annual accounts preparation

Post by jafersadeq » Tue May 10, 2016 11:39 am

zimba88 wrote:It should show up in the notes in the accounts, something like
Unsecured Director's Loan from Mr XYZ 200,000
Dear Zimba,

Many thanks for your reply,
It is in two instalments. Shall I explain that to meet the loan agreement detail.
Anything else to be mentioned, like "Mr... has invested £200,000 in the form of unsecured director's loan.

Jafer

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Zimba
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Re: Annual accounts preparation

Post by Zimba » Tue May 10, 2016 11:45 am

jafersadeq wrote:
zimba88 wrote:It should show up in the notes in the accounts, something like
Unsecured Director's Loan from Mr XYZ 200,000
Dear Zimba,

Many thanks for your reply,
It is in two instalments. Shall I explain that to meet the loan agreement detail.
Anything else to be mentioned, like "Mr... has invested £200,000 in the form of unsecured director's loan.

Jafer
It can be the total amount if it happened in the same year
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tarun_shreeji
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Re: Annual accounts preparation

Post by tarun_shreeji » Wed May 11, 2016 8:22 pm

Hi zimba,

In my company accounts , it's shows like that,
Mrs xyz and mr abc have invested £51000 by directors loan,

It's ok?
Or we need to change it to unsecured directors loan ?
Please advice ,

Thanks

Patel
Nqf level 4 business

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sky_rise
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Re: Annual accounts preparation

Post by sky_rise » Wed May 11, 2016 10:10 pm

tarun_shreeji wrote:Hi zimba,

In my company accounts , it's shows like that,
Mrs xyz and mr abc have invested £51000 by directors loan,

It's ok?
Or we need to change it to unsecured directors loan ?
Please advice ,

Thanks

Patel
i understand that you do not need to mention in the notes that it is unsecured - just that it is in your name. but in your loan agreement and in any accountant letter confirming investment it should show it as unsecured and subordinate in favour of third parties.
members correct me if i am wrong.
"Ask me, and I shall provide it"

helpingperson
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Re: Annual accounts preparation

Post by helpingperson » Fri May 13, 2016 2:46 pm

sky_rise wrote:
tarun_shreeji wrote:Hi zimba,

In my company accounts , it's shows like that,
Mrs xyz and mr abc have invested £51000 by directors loan,

It's ok?
Or we need to change it to unsecured directors loan ?
Please advice ,

Thanks

Patel
i understand that you do not need to mention in the notes that it is unsecured - just that it is in your name. but in your loan agreement and in any accountant letter confirming investment it should show it as unsecured and subordinate in favour of third parties.
members correct me if i am wrong.
I will agree with this.

thutmose
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Re: Annual accounts preparation

Post by thutmose » Fri May 13, 2016 3:07 pm

Accountant's report on page 3 is the account compilation report that home office wants isn't it?
The way they wrote it on the guidance, as if it's a separate special report from the accountant :?

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Zimba
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Re: Annual accounts preparation

Post by Zimba » Fri May 13, 2016 3:22 pm

thutmose wrote:Accountant's report on page 3 is the account compilation report that home office wants isn't it?
The way they wrote it on the guidance, as if it's a separate special report from the accountant :?
Yes. The compilation report will be a page in your accounts, but you often have to explicitly ask your accountant to include it.
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thutmose
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Re: Annual accounts preparation

Post by thutmose » Fri May 13, 2016 3:30 pm

Thanks zimba.
Yes he included one. But at the end of the report there is this signing space and the firm name and address. Do I need to ask him to add his name on the report too?
Guidance says clearly mention the name of the accountant and date of production

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Zimba
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Re: Annual accounts preparation

Post by Zimba » Fri May 13, 2016 4:18 pm

thutmose wrote:Thanks zimba.
Yes he included one. But at the end of the report there is this signing space and the firm name and address. Do I need to ask him to add his name on the report too?
Guidance says clearly mention the name of the accountant and date of production
The name of the accountancy firm and their address must be on the first page of your accounts.
Get your accountant to sign the report page too
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ishfaqsangra
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Re: Annual accounts preparation

Post by ishfaqsangra » Sun Oct 23, 2016 9:28 pm

Get the accountant to sign report page?
Is this the normal accounts practice or for home office purposes only that account should sign the compilation report?
In accounts I understand Directors has to sign the report to directors plus Profit and loss statement sheet,wheelers it is advisable to get accountants sign

jafersadeq
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Re: Annual accounts preparation

Post by jafersadeq » Sun Oct 23, 2016 9:49 pm

ishfaqsangra wrote:Get the accountant to sign report page?
Is this the normal accounts practice or for home office purposes only that account should sign the compilation report?
In accounts I understand Directors has to sign the report to directors plus Profit and loss statement sheet,wheelers it is advisable to get accountants sign
Dear ishfaqsangra,
The compilation report to be prepared by the accountant directed to the director of the company, so it should be signed by the accountant because he prepared it.
Thanks

ishfaqsangra
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Re: Annual accounts preparation

Post by ishfaqsangra » Sun Oct 23, 2016 10:14 pm

Thanks dear jafersadiq I will check my accounts

rajrea
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Re: Annual accounts preparation

Post by rajrea » Fri Nov 18, 2016 8:45 pm

Hi Zimb88,

I've a query regarding showing Directors Loan in Annual Accounts.

We are T1 Ent team under 50k route and we together Invested £15,100 in the tax year 2014-2015
and we together Invested £57,000 in the tax year 2015 -2016.

In annual accounts for the period 2014 -2015 my accountant mentioned in the Notes section as 4th point this is the exact wordings how it appears

Transactions with directors
As at the balance sheet date the company owed £15,100 to the directors as follows:
Mr ABC £8,100
Mr XYZ £7,000

Will this be okay ?

And 2nd thing I want to ask is in the tax year 2015- 2016 it should be added as £15,100 + £57,000 right ?
Please suggest

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Zimba
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Re: Annual accounts preparation

Post by Zimba » Sat Nov 19, 2016 1:02 am

Will this be okay ?
It better say director's loan, as I wrote above
And 2nd thing I want to ask is in the tax year 2015- 2016 it should be added as £15,100 + £57,000 right ?
What do you think ?? :?
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rajrea
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Re: Annual accounts preparation

Post by rajrea » Sat Nov 19, 2016 1:29 pm

@Zimba88

I think it was right correct me if I'm wrong :)

rajrea
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Re: Annual accounts preparation

Post by rajrea » Sat Nov 19, 2016 1:34 pm

Will this be okay ?

It better say director's loan, as I wrote above
As accounts are already submitted for the tax year 2014-2015 can we change the wording in the Notes ?

And 2nd thing I want to ask is in the tax year 2015- 2016 it should be added as £15,100 + £57,000 right ?

What do you think ?? :?
I think I'm right please correct me if I'm wrong :)

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Zimba
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Re: Annual accounts preparation

Post by Zimba » Sat Nov 19, 2016 2:52 pm

No need, change it in this year accounts. And yes, Director's loan will accumulate like any loss.
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n8net
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Re: Annual accounts preparation

Post by n8net » Mon Jan 30, 2017 11:43 am

should it say "Unsecured DL from Mt John Doe" in the notes section, would it be fine if it just says "DL from Mt John Doe" and Unsecured is mentioned in the DL itself ?

thanks

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