Accountants over here please.... Advice needed

[wheelybug]

I have set up a teeny tiny company with a friend (its a partnership) which is not very successful (but of course will be one day).

My friend put in some money to start us off and we have had a few orders and lots of expenses !

I am just about to do our partnership tax return. Do I need to include the money my friend put in as an 'other business receipt'. I am assuming I shouldn't have to as it is capital but it obviously makes quite a big difference to our loss !

I should admit I am a qualified Chartered Accountant but once I qualified I didn't really use the useful aspects of the qualification so am a bit clueless !

Thanks in advance.

Hi wheely - I too am a qualified accountant who's skills are now v.rusty but I am sure you are right in that the amount your friend put in will be a balance sheet item rather than profit and loss therefore shouldn't reduce any loss you may have made.

I'm not sure what the rules are now iro opening year losses but have some dim and distant memories of being able to carry them back and offset them against other income - {I probably have get that completely wrong} - but try and make sure you find the most efficient way to utilise the loss

thanks winetime... am glad you're thinking along the same lines...

Any more ideas anyone ?

little bump for evening crowd....

No, it's a capital item not P&L. Debit cash - credit capital account.

This looks quite interesting. Well, 'interesting' is perhaps too strong a word!

thanks giddykipper (great name) ! I never did get the hang of double entry (fnar fnar). Its amazing I ever qualified really....

Right, now to do the tax return... sigh...