| Pearsons Plumbing Ltd |
| Notes to the Accounts |
| for the year ended 30 November 2021 |
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| 1 |
Accounting policies |
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Turnover |
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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 and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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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: |
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Debtors |
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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. |
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Creditors |
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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. |
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Taxation |
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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. |
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| 2 |
Going Concern |
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These financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption is dependent upon the continued support from the company's shareholder. If the company were unable to trade, adjustments would have to be made to reduce the value of the assets to their receoverable amounts and to provide for further liabilities that may arise. |
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| 3 |
Employees |
2021 |
|
2020 |
| Number |
Number |
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Average number of persons employed by the company |
2 |
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2 |
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| 4 |
Tangible fixed assets |
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Motor vehicles |
| £ |
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Cost |
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At 1 December 2020 |
3,200 |
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At 30 November 2021 |
3,200 |
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Depreciation |
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At 1 December 2020 |
3,200 |
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At 30 November 2021 |
3,200 |
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Net book value |
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At 30 November 2021 |
- |
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| 5 |
Debtors |
2021 |
|
2020 |
| £ |
£ |
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Trade debtors |
31,570 |
|
18,000 |
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| 6 |
Creditors: amounts falling due within one year |
2021 |
|
2020 |
| £ |
£ |
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Trade creditors |
6,399 |
|
672 |
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Taxation and social security costs |
1,522 |
|
3,384 |
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Other creditors |
24,265 |
|
29,087 |
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32,186 |
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33,143 |
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| 7 |
Related party transactions |
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Other creditors at the year end include an amount of £23,066 (2020 : £27,888) due to the directors, R G Pearason and S J Pearson.
This amount is unsecured, interest free and repayable on demand. |
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| 8 |
Controlling party |
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In the opinion of shareholders, there is no controlling party in the company. |
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| 9 |
Other information |
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Pearsons Plumbing Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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317 Horn Lane |
|
Acton |
|
London W3 0BU |
