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I am a director of the limited company and I dont know kow to write accounts for non trading limited company. Could you please advice me since I am facing the penalty if I don't send my accounts to the company house in time in time
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First, judging by your question I suspect you're not in the USA or Canada, where the word "director" has a very specific meaning. If you are getting sarcastic replies, it may be because in the USA and Canada, "director" refers to a member of a company's Board of Directors, who are usually seasoned businesspeople and often part owners of the company, but who seldom take a direct role in management of the company unless they are the Chief Executive Officer (CEO) or the Chief Financial Officer (CFO). They usually don't have to do the accounting; they typically pay someone else to do it unless it's a very small company. I noticed you said "non-trading" so this implies it is a smaller company that isn't publicly traded.
When you say "company house" I suspect you manage a regional office for some larger limited liability company (LLC). If this is the case, a phone call to the main office can get you a copy of last year's books so you know how your paperwork should be formatted. If this is a new start-up company or there are no old records available, your best bet is to call an accountant immediately.
You need two basic papers: a profit-and-loss statement and a balance sheet. The profit-and-loss statement is the easiest to prepare. List all your revenue (income) in one column and all your expenses in another. Revenue means sales, interest on money you have in the bank, repayment of debts, etc. Expenses means rent, payroll, taxes, raw materials, and everything that takes money out of the company. At the bottom of the revenue column will be your total revenue. At the bottom of the expense column will be your total expenses. Subtract the expenses from the income and you have your gross profit or loss. Now, if part of your job is to determine whether taxes are owing on this amount, you need to call in an accountant to look at this sheet. Some of your expenses may be tax deductible. I can't tell you which expenses are and which ones aren't because I have no idea what country you're in or what the local tax rules are like.
The second sheet you need is the balance sheet. The balance sheet lists your assets and liabilities. Split them apart the way you did your P&L sheet. Assets include capital equipment, buildings, computers, money in the bank, and debts that are owing to you. Even if you still owe money on a building you bought, you can list it as a company asset. Liabilities include loan payments (such as an outstanding debt for the building you bought), bills you have yet to pay, payroll expenses, and such. When you add up the total assets with the total liabilities, the amounts should be equal.
Your company may require other calculations or analysis, so if you have contact with the company house or head office you need to call them and find out what their requirements are. Most companies want detailed notes on staffing and hours, for example, or a regular supply inventory. This is a good time of the year to do this, especially if your company needs to pay taxes on employee earnings or on unsold inventory.
If your LLC is a sole proprietorship (that is, if you own it or are the only one doing the accounting) or if you've never done a P&L or a balance sheet before, call an accountant and pay him or her to walk you through it. Trust me, it will be worth the expense. Do not leave it until the last minute because in many places this is tax season and accountants are very busy.
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How can you direct a company when you can't write a clear question? Or is English a second language for you, and not necessary for your job?
This reminds me of the movie, "Don't Tell Mom the Babysitter's Dead."
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