Examples, Questions and Answers supplied to help users understand when a Profit or Loss is made by a company. Also Note 1 for the Accounts relates to the Detailed Breakdown of expenses required to run the business.
Has now been expanded to cover both paid-up shares and unpaid shares. In most small companies that don’t pay dividends to share holders it’s easy. But with 100 £1 shares and only 2 paid-up. Means only 2% of profits can be paid out as dividends.
Micro Entity Accounts Analysis - explain the layout of the Accounts required by CompaniesHouse and HMRC.
Profit and Loss Accounts - cover the first page of figures that show how the Profit or Loss has been worked out. Note 1 covers the Detailed Breakdown of company expenses.
Balance Sheet Note 2 Tangible Assets Deprecation - explain how deprecation of Tangible Assets are worked out at the end of the companies trading period.
Balance Sheet Notes 3 and 4 Debtors and Creditors - explain when the company incurs Debtors or Creditors and normally only reported if they 25% or more of the contract value or they have not been cleared when it’s the companies year end.
Balance Sheet Note 5 Called up share capital - covers both paid and un-paid shares.
Balance Sheet Note 6 Profit and Loss Account - this must balance with the figure in the Profit and Loss Account page.