discontinuing operations

Lina

Hi,
I am also stuck with preparing accounts for two companies. Their accounting period date ended 31.03.2009. Both companies stopped trading on that date and both off them will be struck off the register.
One of them has made profit, the other one had a loss.
Is there somethin I need to know before producing their accouns? I remember smth, that we have to show on P&L, that profit or loss is from discontinuing operations? Is that all, or there is something more to it?

Thank you very much:001_smile:

Psyche

The profit or loss from discontinued operations only applies to businesses that are continuing, but have discontinued part of their operations, not businesses that have ceased to trade. You will do a final set of accounts, dispose of any remaining assets with a balance charge or allowance, and don't forget to inform VAT and Companies House if it is a limited company.

Psyche

Oops that should read "balancing charge" not "balance charge" -- too much multi-tasking!

Lina

Thanks a lot for your answer. SO basically i prepare accounts as normal and submit them to hmrc and CH. And then inform them about cesation of the business?
thanks once again

Bluewednesday

The accounts should be prepared under the break up basis rather than the going concern basis, if you are not sure how to do this they should really go to an accountant.

Are you going to get paid if business is ceasing?

Lina

thanks for your answer. Yes, i will get paid for those.
I do not really want to give it to the accountant, as they are very simple, not many transactions, no assets in the business.

AK002

Make sure they empty the bank account before informing Coys House as once a 652 has been received @ Coys House they freeze the company's bank account.