Help with a balance sheet please

pinksponk

Hi, Can anybody answer me a really stupid question ?

I am doing an end of year set of accounts, just for practice, before I consider doing the real thing. I have completed the P & L and the balance sheet for a small Ltd co. and I cannot work out how to do the equity box on the bottom of the balance sheet.

I have completed it with a "Financed By" box which balances and is all good. I just cannot think how to replace that box with the Equity box. There is only one director/shareholder that I believe gave himself 100 shares when the company was set up. It is a very small business.

Is it OK to file the accounts with the "Financd By" box or does it have to be the "Equity Box" and if so where does the info come from. ??

Help please to cure my thickness.

laurad

iv never heard of an equity box, sorry

Bluewednesday

Do you mean the bottom half of the balance sheet?

If so I do:

Share capital
Profit and loss account
Shareholders funds

The P&L has a note in the notes (funnily enough) showing the movements throughout the year i.e. balance b/f +profit-dividends=balance c/f

pinksponk

Thanks Blue Wednesday. Yes I do mean the bottom half. But I am still no nearer to finding the figures to put in. Is the share capital, the amount of capital he put into the business on start up.? Is that what you mean ?

deanshepherd

Share capital = (presumably) £100 being 100 x £1 shares.

Does your trial balance balance?

pinksponk

Yes everything balances. Its all good. and yes the £100 is 100 x £1 shares.

The way I have completed it is Opening Capital plus net profit less drawings is equal to the net assets.

It all works I just cant translate it into Share capital, P & L and shareholders funds to match the Net Asset figure.

I can only think that these are the new terminology to what I have put down.

I think I am showing my age

deanshepherd

Hmm.. sounds like drawings could be your problem. Directors can't just draw money out of the company like a sole-trader would. It will either be dividends, salary or a loan.

In most cases (for small companies) there are only two entries in the bottom half of the balance sheet. Share capital (£100) and Profit and loss account. These two combined form the Shareholders funds.

The P&L will be undistributed profits b/fwd plus net profit for the year less dividends.