Unusual Balance sheet

I'm preparing a set of accounts and the previous year was prepared by another accountant. There is nothing unusual about the P&L and the balance sheet top section only includes bank account balances (which are correct). However, the bottom of the balance sheet looks like this:

Capital introduced B/Fwd 58000
Surplus in period 20000
subtotal 78000

Capital & Reserves 6000

Ending Balance 72000

The £20k surplus is the amount showing on the P&L, but I just want to know what the £6k could be? The comparative figures for the year before that show the Capital & Reserves amount as a negative amount of £2500.

Any ideas? I don't think it can be a revaluation reserve as they don't own any property.



  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Could they be dividends taken?
  • JodieR
    JodieR Registered Posts: 1,002
    Thanks for the reply but no - its a non profit company limited by guarantee, so no shares issued and therefore no dividends.
    Still stumped!
  • mickwood83
    mickwood83 Registered Posts: 12 Regular contributor ⭐ ? ⭐
    If the surplus in period matches profit from current financial year, them maybe £6k simply be accumulated profits since the beginning (not including current year)

    eg 13/14 profit = £20k
    b/f profit to date =£6k
    Total £26k

    So the next year the capital & reserves figure will be
    14/15 profit (surplus in period) = £x
    b/f profit to date (capital & reserves) = £26k
    Total £26k + X?

    I suppose the best check is to see what they had as 'surplus in period' in the prior year...... If it was £8.5k then the theory above works, as added to the (£2.5k) equals the £6k.

    Quite why it's shown like that I have no idea, just a suggestion!
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