| North East 4 x 4 Ltd |
| Notes to the Accounts |
| for the year ended 31 August 2018 |
|
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2018 |
|
2017 |
| Number |
Number |
|
|
Average number of persons employed by the company |
11 |
|
11 |
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| 3 |
Intangible fixed assets |
£ |
|
Goodwill: |
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Cost |
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At 1 September 2017 |
60,000 |
|
At 31 August 2018 |
60,000 |
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Amortisation |
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At 1 September 2017 |
42,000 |
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Provided during the year |
6,000 |
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At 31 August 2018 |
48,000 |
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Net book value |
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At 31 August 2018 |
12,000 |
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At 31 August 2017 |
18,000 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years. |
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| 4 |
Tangible fixed assets |
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Plant and machinery etc |
|
Motor vehicles |
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Total |
| £ |
£ |
£ |
|
Cost |
|
At 1 September 2017 |
43,708 |
|
19,428 |
|
63,136 |
|
Additions |
2,765 |
|
- |
|
2,765 |
|
At 31 August 2018 |
46,473 |
|
19,428 |
|
65,901 |
|
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|
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Depreciation |
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At 1 September 2017 |
26,564 |
|
15,200 |
|
41,764 |
|
Charge for the year |
2,819 |
|
1,057 |
|
3,876 |
|
At 31 August 2018 |
29,383 |
|
16,257 |
|
45,640 |
|
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Net book value |
|
At 31 August 2018 |
17,090 |
|
3,171 |
|
20,261 |
|
At 31 August 2017 |
17,144 |
|
4,228 |
|
21,372 |
|
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| 5 |
Debtors |
2018 |
|
2017 |
| £ |
£ |
|
|
Trade debtors |
18,739 |
|
25,620 |
|
Other debtors |
310 |
|
310 |
|
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|
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|
19,049 |
|
25,930 |
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| 6 |
Creditors: amounts falling due within one year |
2018 |
|
2017 |
| £ |
£ |
|
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Bank loans and overdrafts |
22,349 |
|
11,715 |
|
Trade creditors |
32,307 |
|
58,404 |
|
Taxation and social security costs |
21,380 |
|
12,849 |
|
Other creditors |
(12,865) |
|
5,190 |
|
|
|
|
|
|
63,171 |
|
88,158 |
|
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| 7 |
Other information |
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North East 4 x 4 Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
|
Hugo House |
|
Ross Road |
|
Stockton on Tees |
|
TS18 2NH |
