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No breakdown of Sundry Creditors

Limited Company Acccounts - Sundry Creditors b/fwd - No analysis from previous year

I am working on a client's Limited Company Accounts and unable to find an analysis/breakdown of the Sundry Creditor Balance which is noted as Director's Loan.

This includes a b/fwd figure previous years' accounts.  Looking back at previous years, this figure increases year on year but with no breakdown!

I have discussed this with the client but he is unable to offer an explanation. (The previous Accountant is deceased)

I am stuck!  How do I proceed?

 

 

 

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17th Aug 2017 12:31

Ouija board ?

Often you can pick out these things from subsequent payments. Just because it's increasing doesn't mean that last year's creditor wasn't paid in full and a new creditor arose some time in the current year.

But if you genuinely can't find out, just get your balance sheet right and write back any historic creditors for which you can find no evidence.

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17th Aug 2017 12:47

use some common sense and reconstruct the position!

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By jcace
17th Aug 2017 13:23

I'm a little puzzled as to what breakdown you need. You say that the Sundry Creditor balance is noted as Director's Loan; what further breakdown are you wanting?

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By MaryTK2
to jcace
17th Aug 2017 14:16

With no evidence of a breakdown, I have my suspicions that this may possibly be a balancing figure which now stands at £122K. It has risen from £30K in previous years with no breakdown or explanation in any years. I realise I need to approach the client but loathe to think that I may need to redo the previous years' accounts!

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By Ruddles
to MaryTK2
17th Aug 2017 16:31

Stop worrying. Take the balance you've been given and ensure that any subsequent transactions are properly reflected.

Just a thought, though - have you checked the dividend history?

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17th Aug 2017 14:40

'I have discussed this with the client but he is unable to offer an explanation.'

Not sure what the problem is if the previous year's accounts were signed off and filed. If the client isn't sufficiently interested I am not sure you need be.

You have inherited a balance, run with the balance. if the client is unhappy with the balance brought forward it might be that your best option, or only option, is to redo the previous year's accounts.

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17th Aug 2017 15:58

I agree with @jcace. Your question contains its own answer. You say the sundry creditor is a loan from a director. Is the problem perhaps that there is more than one director and you don't know which one it relates to?

The former now deceased accountant must have had continuity arrangements, and whoever is supervising those arrangements must have access to his files.

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to johngroganjga
17th Aug 2017 16:16

Quote:

The former now deceased accountant must have had continuity arrangements, and whoever is supervising those arrangements must have access to his files.

John, you are making a bold assumption that, a) the deceased accountant was a member of a professional institute and that b) even if they were they adhered to the regulations.

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