Registered number
02145090
The Cotton Patch Limited
Unaudited Filleted Accounts
30 September 2024
The Cotton Patch Limited
Registered number: 02145090
Balance Sheet
as at 30 September 2024
Notes 2024 2023
£ £
Fixed assets
Intangible assets 3 21,150 -
Tangible assets 4 12,920 8,357
34,070 8,357
Current assets
Stocks 273,788 306,320
Debtors 5 19,533 13,132
Cash at bank and in hand 177,278 211,712
470,599 531,164
Creditors: amounts falling due within one year 6 (143,926) (173,184)
Net current assets 326,673 357,980
Net assets 360,743 366,337
Capital and reserves
Called up share capital 400 400
Profit and loss account 360,343 365,937
Shareholders' funds 360,743 366,337
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr Nicholas Sewell
Director
Approved by the board on 11 June 2025
The Cotton Patch Limited
Notes to the Accounts
for the year ended 30 September 2024
1 Accounting policies
Basis of preparation
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).
Turnover
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. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.
Intangible fixed assets
a) Website development costs
Where the company's website is expected to generate future revenues in excess of the costs of developing the website and all other capitalisation criteria are met,expenditure on the functionality of the website is capitalised and treated as an intangible fixed asset and amortised over 4 years, which represents the expected utilisation of the website by the company commencing from the date the website is available for use. Expenditure incurred on maintaining the website is written off as incurred.
Tangible fixed assets
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:
Office and computer equipment 25% straight line
Furniture and fittings 15% straight line
Stocks
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.
Debtors
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.
Creditors
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.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
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.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 17 15
3 Intangible fixed assets £
Website Development Costs:
Cost
Additions 21,600
At 30 September 2024 21,600
Amortisation
Provided during the year 450
At 30 September 2024 450
Net book value
At 30 September 2024 21,150
Website development costs are being written off in equal annual instalments over their estimated economic life of 4 years. The carrying amount as at 30 September 2024 is £21,150 and has an estimated remaining useful life of 3 years and 11 months.
4 Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2023 125,751
Additions 9,909
At 30 September 2024 135,660
Depreciation
At 1 October 2023 117,394
Charge for the year 5,346
At 30 September 2024 122,740
Net book value
At 30 September 2024 12,920
At 30 September 2023 8,357
5 Debtors 2024 2023
£ £
Trade debtors - 180
Other debtors 19,533 12,952
19,533 13,132
6 Creditors: amounts falling due within one year 2024 2023
£ £
Trade creditors 82,870 108,584
Taxation and social security costs 43,261 35,172
Other creditors 17,795 29,428
143,926 173,184
7 Other financial commitments 2024 2023
£ £
Total future minimum payments under non-cancellable operating leases 33,900 42,000
8 Other information
The Cotton Patch Limited is a private company limited by shares and incorporated in England. Its registered office is:
1285 Stratford Road
Hall Green
Birmingham
West Midlands
B28 9AJ
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