Closing down a limited company

My client has asked me to close down their limited company, this is not something that I have been involved with before.

Their accounts period ended at the end of Jan-11 and they ceased trading during this period.  However, they still continue to have some business insurance payments and loan repayments going through their bank account.  In addition to this I have found that, due to errors in calculations, they owe a small amount of VAT. 

I am unsure for what period I prepare these accounts.  Do I prepare the accounts to Jan-11, writing off assets to zero as they can't continue to be depreciated.  Would I then need to submit a new set of accounts for the period to date, where they will empty their bank account, repay their loan/VAT/my fees?

Also, can the company be closed down if the directors loan account is a debit balance?

Many thanks for any advice!