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Accounting for a CASC

Community Amateur Sports Club - funds introduced

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Hi all

I have a query about a CASC that has been recently been set up as a Limited Company.  Prior to being limited it had circa £50K of reserves, which have been transferred into the Ltd Co.  How do I account for this capital introduced given that it is a company limited by guarantee without share capital?  Normally it would go to the directors' loan account as funds introduced in a standard Ltd Co but this isn't a standard set up.

Many thanks in advance.

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By jonharris999
20th Sep 2021 10:39

Assuming that there is then no real creditor for this money, the DR is cash (obvs) and the CR is a reserve of some kind. The co should have a reserves policy that might, for example, nominate and divide the reserves for specific purposes. Perhaps it would also specify target levels for reserves; a dilemma for sports clubs is always how much to save up for the next big project/refurbishment, vs. how much to spend this year. It helps in that well-trodden AGM argument (and saves time) if the policy has been decided in advance.

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Replying to jonharris999:
By CCF21
20th Sep 2021 12:13

Thanks for your reply, I will check this out :-)

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By Paul Crowley
20th Sep 2021 11:46

Same question a short while ago

I would show on P & L what it is
Transfer of reserves from CASC

Next year shows as reserves
You say limited. Limited by guarantee?
If not then needs a rethink

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Replying to Paul Crowley:
By CCF21
20th Sep 2021 12:11

Hi, thanks for the reply. Yes it's limited by guarantee, I need to clarify the status prior.

Show on the P & L as income? I would have thought it would have been Dr bank, Cr some sort of reserves but just wanted clarification.

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By lionofludesch
20th Sep 2021 11:52

There was a similar thread last week, in which merger accounting was proposed as a solution.

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