R & M Car Sales Limited Filleted accounts for Companies House (small and micro)

R & M CAR SALES LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: SC293946

R & M Car Sales Limited

Filleted Unaudited Financial Statements

31 December 2018

R & M Car Sales Limited

Financial Statements

Year ended 31 December 2018

Contents	Page

Chartered accountants report to the board of directors on the preparation of the unaudited statutory financial statements	1

Statement of financial position	2

Notes to the financial statements	4

R & M Car Sales Limited

Chartered Accountants Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of R & M Car Sales Limited

Year ended 31 December 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of R & M Car Sales Limited for the year ended 31 December 2018, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at www.icas.com/accountspreparationguidance. This report is made solely to the Board of Directors of R & M Car Sales Limited, as a body, in accordance with the terms of our engagement letter dated 29 May 2018. Our work has been undertaken solely to prepare for your approval the financial statements of R & M Car Sales Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with the requirements of ICAS as detailed at www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than R & M Car Sales Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that R & M Car Sales Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of R & M Car Sales Limited. You consider that R & M Car Sales Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of R & M Car Sales Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

RITSONS Chartered Accountants

103 High Street ELGIN IV30 1EB

16 April 2019

R & M Car Sales Limited

Statement of Financial Position

31 December 2018

	2018		2017
			(restated)
Note	£	£	£

Fixed assets

Intangible assets	6	28,468	42,701
Tangible assets	7	313,273	382,836
		---------	---------
		341,741	425,537

Current assets

Stocks		238,560	210,632
Debtors	8	–	2,000
Cash at bank and in hand		131,091	36,911
		---------	---------
		369,651	249,543

Creditors: amounts falling due within one year	9	185,766		235,919
		---------		---------
Net current assets			183,885	13,624
			---------	---------
Total assets less current liabilities			525,626	439,161

Creditors: amounts falling due after more than one year	10		–	21,000

Provisions

Taxation including deferred tax	11,585	19,065
	---------	---------
Net assets	514,041	399,096
	---------	---------

Capital and reserves

Called up share capital	10	10
Profit and loss account	514,031	399,086
	---------	---------
Shareholders funds	514,041	399,096
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

R & M Car Sales Limited

Statement of Financial Position (continued)

31 December 2018

For the year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 16 April 2019 , and are signed on behalf of the board by:

Mr W Ritchie	Mr G McKnockiter
Director	Director

Company registration number: SC293946

R & M Car Sales Limited

Notes to the Financial Statements

Year ended 31 December 2018

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is 2 Chanonry Street, Chanonry Industrial Estate, Elgin, Moray, IV30 6NF.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date .

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	20% straight line
Franchise Fee	-	20% straight line

In the prior year the directors amended the goodwill amortisation policy in order to write off the opening balance over its estimated useful life of 5 years from 1 January 2016.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold Property	-	2% straight line
Plant & Machinery	-	15% reducing balance
Motor Vehicles	-	25% reducing balance
Office Equipment	-	15% reducing balance

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand held on demand. Bank overdrafts are shown within creditors due within one year. Trade debtors and creditors are measured at the undiscounted amounts receivable from the customer or payable to a supplier, which is normally the invoiced price. Directors' loans to the company which are repayable on demand are measured at the undiscounted amount of the cash expected to be paid.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 5 (2017: 5 ).

5. Prior year adjustment

The financial statements for the year ended 31 December 2017 have been restated due to capital expenditure which was included under cost of sales. The net effect of this restatement is an increase in profit before tax of £36,800.

6. Intangible assets

	Goodwill	Franchise fee	Total
	£	£	£
Cost
At 1 January 2018 (as restated) and 31 December 2018	140,000	3,455	143,455
	---------	-------	---------
Amortisation
At 1 January 2018	97,299	3,455	100,754
Charge for the year	14,233	–	14,233
	---------	-------	---------
At 31 December 2018	111,532	3,455	114,987
	---------	-------	---------
Carrying amount
At 31 December 2018	28,468	–	28,468
	---------	-------	---------
At 31 December 2017	42,701	–	42,701
	---------	-------	---------

7. Tangible assets

	Land and buildings	Plant and machinery	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2018 (as restated)	271,072	10,579	247,089	2,284	531,024
Additions	–	–	25,100	–	25,100
Disposals	–	–	( 113,974)	–	( 113,974)
	---------	--------	---------	-------	---------
At 31 December 2018	271,072	10,579	158,215	2,284	442,150
	---------	--------	---------	-------	---------
Depreciation
At 1 January 2018	37,184	5,151	104,180	1,673	148,188
Charge for the year	5,421	814	26,560	93	32,888
Disposals	–	–	( 52,199)	–	( 52,199)
	---------	--------	---------	-------	---------
At 31 December 2018	42,605	5,965	78,541	1,766	128,877
	---------	--------	---------	-------	---------
Carrying amount
At 31 December 2018	228,467	4,614	79,674	518	313,273
	---------	--------	---------	-------	---------
At 31 December 2017	233,888	5,428	142,909	611	382,836
	---------	--------	---------	-------	---------

8. Debtors

	2018	2017
		(restated)
	£	£
Trade debtors	–	2,000
	----	-------

9. Creditors: amounts falling due within one year

	2018	2017
		(restated)
	£	£
Corporation tax	53,666	27,472
Social security and other taxes	21,850	7,511
Other creditors	110,250	200,936
	---------	---------
	185,766	235,919
	---------	---------

10. Creditors: amounts falling due after more than one year

	2018	2017
		(restated)
	£	£
Other creditors	–	21,000
	----	--------

11. Related party transactions

Dividends of £42,250 (2017 - £42,500) were paid to the directors during the year.