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Balance Sheet questions

Micro-entity Balance Sheet questions for Annual Accounts

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I have some questions about the Micro-entity Balance Sheet on the Companies House website. Apparently I have to fill this out for my company's yearly Annual Accounts or else I will be fined. While my company is stated as Active, it has not yet started any type of trading. I have a rough idea of what the below terms are thanks to Google but additional clarification/confirmation would really help.

"Prepayments and accrued income" - Search results for this indicate it represents debt, but I thought debt would be under liabilities?

"Creditors: amounts falling due within one year" - I guess this is liabilities that have to be repaid within a year from the balance sheet date? 

"Creditors: amounts falling due after more than one year" - Is this long term liabilties? 

"Accruals and deferred income" - Is this akin to money secured through crowdfunding platforms like Kisckstarter?

Lastly, what is the difference between "Net current assets (liabilities)" and "Total assets less current liabilities"? I understand to calculate Net Current Assets you subtract liabilities from your assets, but the wording of these two entires is somewhat confusing. Why couldnt they just say "Liabilities" and "Net Current Assets"??

Thank you for taking the time to read this. Hopefully someone here can help me out!

Replies (6)

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By SXGuy
10th Jan 2019 14:52

Without trying to sound mean (because others probably will) Id suggest you seek an accountant to help you.

The questions you raise should really be basic stuff that you should already know if your preparing accounts.

It sounds to me as though you haven't, but your just filing in the heavily reduced micro entity accounts direct to Co House, which in my opinion is wrong, you'll just be guessing figures.

How do you propose, you will file full accounts to HMRC after this? its not just about filing with Co House.

I don't think anyone here is prepared to give you a free teaching course on what balance sheet entries mean if im honest.

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By andy.partridge
10th Jan 2019 15:15

I am exercising considerable restraint and I thank you for your interesting question. Questions. All of them.

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By TsunamiOne
10th Jan 2019 16:29

We all have to start somewhere. If I could afford an accountant I wouldnt be here, getting mocked by strangers.

Im curious, why is there the Co House option if I still have to file full accounts to HMRC? Seems odd.

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Replying to TsunamiOne:
By SXGuy
10th Jan 2019 16:55

And that, is exactly why you need an accountant.

Even if you just pay for their time to answer your questions. An accountant is the one person who you should consider as a cost before anything when going in to business if you don't know what you are doing, and quite frankly it's been proven you need one more so than you realise.

The reason for having to file with both Co House and hmrc are in short, because that is the rules. I'm not going in to why, it just is.

I'm being as nice as possible given that this is a site for accountants to help other accountants and not tax payers.

Thanks (1)
11th Jan 2019 09:51

You should at least consult an accountant and find out how much it would cost you to complete and file the accounts.
If its truly non-trading it shouldn't be too much and would probably save you fines/penalties in the long run.

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By Matrix
11th Jan 2019 10:05

I’d you can’t afford to have an accountant to file the accounts for the limited company (approx annual cost £1k) then you should either trade as a sole trader or review the viability of your business model.

An accountant would ensure you are compliant and also save you money.

You do not need to file accounts/tax returns with HMRC until the company has started trading but you will need to let them know this so the company does not incur penalties.

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