Customer who has Ltd company put mortgage through as Long term liability

Hi all...

I am about to take on a new customer who prepared his first yrs accounts.  He has just sent me the balance sheet and has added his own mortgage as a long term liability.....  Please advise.... as I am 100% certain this is not allowable.. but wanted some additional advice......

Should I also recommend the customer resubmits last years accounts?

His first yr he also made a loss...  so with the mortgage on top... he has negative 142k...

Should the loan also been shown in the reserves as a loss?  As it is shown on CL??

Advice needed please... this is the first time i have come across anyone doing this...

 

Thanks in advance ... laura

 

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petersaxton |
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Chris Smail |
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