Hi,
hopefully someone can help me out here.
I am just pulling together a balance sheet for my abbreviated accounts submission to Companies House.
This is our first year of business and we (as directors) put in around £5k worth of directors loans into the company. These are showing as liabilities on the balance sheet (which i presume they are - we are intending on being paid back after all)
However we did not buy assets with these - the loans were used to buy advertising and fund theatre shows that would happen in the next financial year, the money duly came in and the company is now making profit (yay!) but due to the financial year end being where it is and the directors loans not yet paid back the balance sheet is showing higher liabilities than assets (we spent the money so this is correct) but I know that a balance sheet must balance otherwise the company is deemed insolvent. can i still submit this balance sheet to Companies House - explaining the negative balance sheet number in the notes?
Or will this cause issues?
thanks in advance
Lisa