Thread now moved, my sincerest apologies.

GoldenOldy

Hi there

https://forums.moneysavingexpert.com/discussion/6471650/crash-course-on-debtors-on-accounts-if-possible-please#latest

I wondered if someone might help me understand the following please?
if figures in brackets are minuses then why is the figure of 12k in the bottom 8k?
A company account reads as follows:-

Debtors (10,000) does that mean people owe you 10,000? 
Cash.       2,000 ……Does this mean the companies money in the bank
              (12,000) …… How does this work

[Deleted User]

I think that you need to provide a bigger breakdown of the balance sheet. 

Debtors are indeed those who owe the company money. Cash is indeed money in the bank accounts. 

I don’t see ‘the bottom 8k’ 
You can’t have a minus figure for debtors. 

Is it the case that the total current assets are £12k?

Not enough information.

Penguin_

The only way I could see the above happening, i.e. a negative on a debtors balance is if the company paying the money had over paid or paid for something in advance. 

uknick

If it's a limited company and the accounts have been submitted, give us the company registration number and we can look it up at Companies House.

uknick

Penguin_ said:

The only way I could see the above happening, i.e. a negative on a debtors balance is if the company paying the money had over paid or paid for something in advance. 

Could be

a massive bad debt problem with customers (unlikely),
they've messed up their prepayments by over expensing them (I see this quite often),
VAT is being posted to the wrong part of the accounts (could be they're used to getting a refund each quarter so map it to debtors but this time they owe VAT and haven't changed the presentation in the balance sheet)

or just a mess up by the accountant/bookkeeper.

Nearlyold

Doesn't the OP just mean if the figures in brackets are negative why isn't the total 8K? rather than why is the total 8K. 

uknick

Nearlyold said:

Doesn't the OP just mean if the figures in brackets are negative why isn't the total 8K? rather than why is the total 8K. 

He could well do, but without the context it's not possible to answer.

Nearlyold

Just noticed OP has a presumably related post running:- https://forums.moneysavingexpert.com/discussion/6471650/crash-course-on-debtors-on-accounts-if-possible-please#latest

GoldenOldy

Thnks everyone. I put this message in the other part of this website forum As Nearlyold has stated. I thought it might be better positioned there.