The directors present their report and the unaudited financial statements of the company for the year ended 30 September 2023. Last year's accounts included year end debtors of £1,402.64 on the balance sheet. In fact this should not have been included as there were no debtors outstanding at the year end. To correct in this year's accounts £1,402.64 has been posted through the profit and loss suspense account which thereby reduced the retained earnings by the stated amount.
Service charges are levied on flat owners twice a year in January and July. The July charge includes three months in advance from October to December as the accounting period ends on 30th September each year.
Ground rent is charged to flat owners who do not have a share in the freehold and this applies to 3 flat owners. The ground rent is included on the January invoice covering the period January to December. Three months are charged in advance. In the current year all service charges and ground rents, except £40, were fully paid up at the end of the accounting period . Services charges and ground rents in advance amounted to £2,396, and are included as other credits in note 7 to the accounts.
Service charges and ground rents were not included in the prior year accounts and therefore this year's reported turnover is reduced by £2,396 accordingly.