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jeenius99
01-12-2004, 03:05 PM
I have a number of bookkeeping questions. My business is only in it's first year and I am struggling with a few things related to our accounts.

1. Should bank charges and interest be recorded as expenses and income or should they just appear on a bank statement reconcilliation?
If they need to be included in expenses and income sheets should they be entered on the first day of the next banking month or should accounts be ammended after the statement is received to show credit and debit on the day it occurred?

2. Are all start up costs entered on the first day of trading or should seperate monthly accounts for expenses prior to trade need to be produced?

3. Should wages appear as total amount prior to deductions or after deductions on the expenses sheet given that one cheque is written to the inland revenue each month for the total of employees and employers contributions?

4. What needs to be included in abbreviated accounts for companies house?

5. What end of year paperwork does inland revenue require from a limited company?

Thank you in advance for all of your help.

Rachel Habacus
05-12-2004, 02:15 AM
Wow that's some serious questions...

I have a number of bookkeeping questions. My business is only in it's first year and I am struggling with a few things related to our accounts.

1. bank charges and interest should be recorded as expenses and income. Your bank invariably advises of these charges in advance it is better to input prior to starting the bank rec.

2. Are all start up costs entered on the first day of trading or should seperate monthly accounts for expenses prior to trade need to be produced?

It's not necessary to have a set of pre-trading accounts. You need to add these expenditure figures into your accounts but how will depend on where the money came from.

3. Should wages appear as total amount prior to deductions or after deductions on the expenses sheet given that one cheque is written to the inland revenue each month for the total of employees and employers contributions?

Ah the allocating payroll question.
Gross staff wages gross should be posted to your expense account, the PAYE and NIEE should be deducted from this amount and posted to to your liability account as a minus figure. Your NIER should be posted to an expense account and also as a minus to the PAYE/NI account in liabilities.
64000 1000.00
21000 (120.58)
21000 (202.63)
64001 190.50
21000 (190.50)
total 676.79

4. What needs to be included in abbreviated accounts for companies house?

This is prepared by an accountant, find a good one and let him/her guide you through the rest.

5. What end of year paperwork does inland revenue require from a limited company?
This info's easily accessible from www.inlandrevenue.gov.uk. You can also apply for an employers starter pack which will inform you of the relevant procedures. The dead-line is 19th May and will include a P35, P14's P11D's and P11D (b)'s. You will also have to submit a corporation tax return, a good accountant will include this in the overall y/e price.

Thank you in advance for all of your help.

You're welcome,

Rachel