Balance Sheet Adjustment
Just going through a Ltd Co set of of accounts and have come across the following problem.
Co A's (development Co) BS show a property @ 88k and a mortgage of 65k.
All the relevant documents show that the property and mortgage do not belong to Co A, but Co B (construction Co).
Of information obtained from the Director, it appears that when the original purchase was made, Co A was the intended owner but funding would only be granted if taken in the name of Co B.
To remove it from the BS would leave Co B as a debtor for 23k. This 23k increase is due to payments made to Co B for renovation etc on the rental property.
No interest charges or rental income had been processed through Co B?
Director was involved with Co B, however this Co went into liquidation several years ago and the IP's were not interested in selling the property due to negative equity.
So do I just leave it as a long term Debtor and thus correct the property side of the BS?
It would be handy to write the debt off, but I can not see that being a possible.
- Company overdue but wants to be struck off 306 8
- another ir35!!!! 1,011 7
- What does it mean?? 254 9
- VAT code for invoice from not VAT registered company 66 1
- Two clients (married to each other) disappeared from client list 282 8
- A change from the old Q v NQ debate 226 8
- Need qualification back due to clients' banks needing my references 610 12
- Notes to statutory accounts 251 13
- Auto enrolment 975 11
- Money transfers between companies owned by one person 120 4
- Gifting shares 244 5
- Tax Credit Overpayment 230 8
- A question about share structure 189 3
- Holding companies 136 5
- Offsetting CIS tax suffered against CT 102 2
- I'm not sure if this is the correct forum but here goes 535 6
- Soil Survey Required Mortgage 205 6
- PayPal Transaction Analysis 102 2
- Donations/grants by a CIC 172 1
- VAT Registration 403 18
- Skandia using wrong address 1,528
- Nil Rate Band Trust - index linked debt by way of charge over property 839
- International interest certificate 457
- NOVA 315
- Subby expenses subject to tax & NI? 205
- Can Limited Company Buy Share of Rental Property? 205
- Bonus Bonds 199
- Management expenses for investment company 192
- DOUBLE TAXATION RELIEF BETWEEN A PRIVATE LTD COMPANY AND GREECE (the private Ltd has no employees and its main activity is 180
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 168