The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Is my limited co insolvent?
Post Info TOPIC: Is my limited co insolvent?
FingerBob


Newbie

Status: Offline
Posts: 3
Date:
Is my limited co insolvent?
Permalink  

Hi, new here.

I own a  micro business that's been meandering along for 10 years. I accept I should know the answer to this, but I've forgotten confuse

  • The company has fixed assets of 100
  • Total assets less current liabilities 100
  • Creditors: amounts falling due after more than one year (£441,378)
  • Total net assets (liabilities) (£441,278)
  • Capital and reserves (£441,278)

The company has no external creditors (doesn't owe any external debt, no outstanding invoices) and has never invoiced anything. I've been creating intellectual property, but no value has been shown in the accounts yet (there is value there).

 

Unfortunately, following health issues I'm having memory problems, and I'm trying to figure out a couple of basics:

1) I need to understand whether my company could be viewed as being insolvent.

2) I think that the £441,278 liability is primarily made up of unpaid salary to me. Given the figures above, is this feasible, even if it's not the best way to report this?

 

Thanks for any help or input.

FB



__________________
FingerBob


Newbie

Status: Offline
Posts: 3
Date:
Permalink  

Best I can tell the answer is no.

The company's liabilities outweigh it's assets, but those liabilities aren't immediately due - they're due after more than one year. So, the company would become insolvent if no other changes take place before the liabilities are due to be met.



__________________
BooksByCharlotte


Member

Status: Offline
Posts: 17
Date:
Permalink  

I would speak to an Insolvency Practitioner to get their advice on this. Most in my experience offer a free consultation. 



__________________
FingerBob


Newbie

Status: Offline
Posts: 3
Date:
Permalink  

Thanks very much for your response!



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Is my limited co insolvent?
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About