The 2020 Accounts showed the Company as having title to an Investment Property, and hence entitlement to Rental Income from that property.
This was incorrect because title had not legally passed to the Company.
Consequently a Prior Period Adjustment has been made to those Accounts to reflect the correct treatment of monies banked and paid.
The effects on the Profit and Loss Account and Balance Sheet are as follows:-
Cost of Investment property -As previously stated, £125,273, As restated, £0
Rental income - As previously stated, £(2,610), As restated, £0
Expenses - As previously stated, £888, As restated, £360
Corporation tax expense - As previously stated, £327, As restated, £0
Debtors - As previously stated, £0, As restated, £45,368
Directors loan - As previously stated, £(77,823), As restated £0.
Corporation tax creditor - As previously stated, £(327), As restated, £0