Ltd Co stopping trading post balance sheet

Ltd Co stopping trading post balance sheet

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Small Ltd Co Incorporated Nov 13.  18 months and two days later they have decided to close the Ltd Co and write off the directors loan accounts (CR balances).

I will have to do 2 sets of accounts I think:

1.  Nov 13 - Dec 14.

2.  Jan 15 - closure (presumably we wait until all bills are paid and the bank account is closed)

My question is, how do I deal with the Dec 14 accounts in light of the knowledge that the business has ceased trading (officially 31/05/2015).  Do I change to a break up basis?

What do I disclose?

Many thanks

 

Replies (12)

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By johngroganjga
08th Jun 2015 12:20

There is still time to change the accounting reference date to that you only have to produce one set of accounts.

If you do that the question you ask will not arise.

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By thomas
08th Jun 2015 13:09

I thought the first accounting period couldn't be more than 18 months?

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By Jekyll and Hyde
08th Jun 2015 13:41

There may possibly be a dormant period at the start...

... which you may be able to reduce the the first ARD and to take the second period to less than 18 months.

edit. having looked at the post again, why is the first ARD to 31/12/14 and not 30/11/14? Has the accounting period already been extented? if so then my suggestion would not work as this would result in extending accounting periods more than once in 5 years.

 

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By johngroganjga
08th Jun 2015 13:17

No it can't

Sorry I misread the question as saying trading ceased in January. Did much happen in the last two days?

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By thomas
08th Jun 2015 13:52

Probably nothing.  The board

Probably nothing.  The board minute has the date on it though where the directors agree to close the Ltd and write off the loan accounts.  There will still be a few transactions in June as they collect monies due and pay their creditors.

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By johngroganjga
08th Jun 2015 13:56

If there was no trading in those two days then an 18 month period will include all the trading there was.

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By Jekyll and Hyde
08th Jun 2015 14:09

If the first ARD was extended from 30/11/14......

... can it be extended again so soon?

Date of incorp was in Nov 13 and I would therefore expect the first ARD to be 30/11/14. As it is 31/12/14 I can only assume that it has been extended.

 

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By johngroganjga
08th Jun 2015 14:14

Yes I think so provided the filing deadline has not passed, which in this case it hasn't.

There are rules to prevent the extending of two or more successive periods. But this is extending the same period twice, which as far as I am aware there is no rule to prevent.

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By thomas
08th Jun 2015 14:33

Ah, thank you.  I will

Ah, thank you.  I will contact Companies House and ask if the same period  can be extended twice. 

From the date the Ltd Co stopped trading, they will pay bills, collect  debtors. The directors will take the assets (offset dir loans or sell to 3rd party).

 

 Once this is all done, how do they get rid of the Ltd Co?

 

 

 

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Replying to DJKL:
By johngroganjga
08th Jun 2015 14:41

Form DS01

thomas wrote:

I will contact Companies House and ask if the same period  can be extended twice. 

I wouldn't.  I would just file the change.

thomas wrote:

Once this is all done, how do they get rid of the Ltd Co?

Form DS01

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By thomas
09th Jun 2015 10:08

The companies house website says any period cannot be extended more than once in 5 years.  I've called them as well and they say I cant extend.   Any thoughts on the basis of the accounts?

The assets will be sold to the main shareholder and offset against his rather large directors loan to the Co.  Assuming we do this at NBV then the asset valuation at 31/12/14 is just as normal I think.

 

Do I need to add something to the directors report or a PBSE note? or both?

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By johngroganjga
09th Jun 2015 11:28

You wouldn't have this problem if you had heeded my advice not to contact Companies House.

If you are adamant that you need advance clearance from Companies House of what you propose to do (why is beyond me) you should get back on the phone with a copy of CA 2006 s392 (3) in front of you. 

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