Sorry, another DLA question
I've just taken on a new client and am trying to get their records up to date.
I'm preparing overdue company accounts. All the records have been kept in excel, some expenses covered from personal cash, some from business account. The business bank account has also been used for some personal expenses and 'drawings' have been haphazard. No bank reconciliations have been done along the way and to make it worse the client has no bank statements (they were online, has since changed bank accounts so will have to request copies).
At the moment I am putting all the personal expenses, drawings and personal cash spent through the DLA. Once I have the closing bank balance I will also put the difference between book cash and actual cash through the DLA, because any difference will almost certainly be due to cash in/out from the director. When I have done all of this I expect I will have an overdrawn DLA of around £11,000.
So what would you do to clear the balance? We're more than 9 months after the year end. At the moment there is no salary going through the accounts, so how much would you put through? The whole lot? There is no PAYE scheme in place. I expect we have sufficient reserves to clear it with a dividend.
I will be so glad when I've got this one up to date. Don't worry, I'm being properly remunerated and they have been given a strong talking to.
Thanks for your help. Sorry if it’s an obvious answer but it’s not something I’ve come across before as a new practice.