Liabilities

[ale100]

Hi Everyone,

I am going to apply for extension in few months time and looking at my accounts, I have invested the money as director 's loan and It shows my investments as liabilities.
Creditors: amounts falling due within one year : 25000
Net current liabilities : 15000
Net liabilities : 12000

and reading on some forums apparently It says that since the loan is unsecured, the investments should not be listed as liabilities. I highly appreciate if someone knows how this works and also if it can be fixed on the final account I am producing in 2 months time.

Many thanks

[ale100]

Hi All,

I just realized that my accountant was not a member of ACCA or other mentioned supervisory bodies and also the accounts were not prepared as UKBA guidelines for the last two years. I appreciate if someone can let me know if It is possible redo my accounts with another accountant for the last two years after they have been already submitted before?

Many thanks,

[ishfaqsangra]

Thats what somebody advised me and I have only submitted one year account and all My Directors Loan was mentioned as"Long Term Liabilities"

I think it can be corrected but "Unsecured and in favor of third party creditors mean that if Company becomes insolvent that loan amount will be used to pay first the third Party Creditors and if there is none then definitely director.

Although Loan is Unsecured and in favor of Third Party Creditors it is a long term liability.If there is repayment condition for example after 10 years it still is the liability(although third parties should clear first in case of insolvency)

I have no accountancy background and will correct my own accounts for year 1,2,3 as well but just an opinion, I am sure somebody will add valuable comments

[zshaan21]

hi all,

I submitted my first year accounts and my accountant put my investment on creditors section.please help me if it's correct.

thanks