ESC C16 has been agreed for distributions made to the 100% shareholder/director during the final accounting return period. There is an overdrawn director's loan account brought forward and it has been agreed that this can be waived and also treated as a capital distribution. But how should these transactions be shown in the accounts and disclosed? Are the further distributions still added to the DLA in the company's accounts? / Shown as distributions? / How is the waiver shown?
Jane
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Don't bother
The approach my practice has always adopted, and it hasn't ever caused grief, is simply deal with trading items in the final accounts so as to get the correct closing P&L for Corporation Tax, and leave the reporting aspects there, i..e don't worry about trying to show the esc c16 distribution on the balance sheet - if the company is being struck off, the only people who will see the balance sheet are HMRC and the client presumably?