Bank account left out of Limited Company Accounts
I may well be one of those annoying book-keepers on the other thread...
My friend has showed me her accounts from last year (prepared by a Chartered firm) and this years books (written up by herself, checked by me as I am a book-keeper).
Despite having £3k in debtors at the end of last year and around £16k in the company bank account there is no mention of either on the Balance sheet. The 'cash at bank' figure is only the sum of tax owed plus the accountancy bill plus the shareholding. Is this ok? I was under the impression that the Balance sheet should show a picture of the company's assets at a given moment in time - I have asked the accountant for journals and a bank reconciliation and they tell me they never prepared any. I studied accountancy years ago and this is very different to what I remember! Her dividends recorded are only the amounts that she actually took from the bank during the year so they have not been accounted for "in advance".
I don't want to worry her if I have the wrong end of the stick but shouldn't the Balance sheet state what is in the account at the year end (give or take the debtors and creditors)?
Thanks for anyone who can offer an opinion...