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 2021

R & M Car Sales Limited

Financial Statements

Year ended 31 December 2021

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 2021

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 2021, 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 12 July 2021. 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

22 June 2022

R & M Car Sales Limited

Statement of Financial Position

31 December 2021

	2021		2020
			(restated)
Note	£	£	£

Fixed assets

Tangible assets	6		311,992	334,167

Current assets

Stocks		297,722	248,594
Debtors	7	17,176	9,578
Cash at bank and in hand		286,436	157,454
		---------	---------
		601,334	415,626

Creditors: amounts falling due within one year	8	85,767		59,986
		---------		---------
Net current assets			515,567	355,640
			---------	---------
Total assets less current liabilities			827,559	689,807

Provisions

Taxation including deferred tax	10,395	14,358
	---------	---------
Net assets	817,164	675,449
	---------	---------

R & M Car Sales Limited

Statement of Financial Position (continued)

31 December 2021

	2021		2020
			(restated)
Note	£	£	£

Capital and reserves

Called up share capital	10	10
Profit and loss account	817,154	675,439
	---------	---------
Shareholders funds	817,164	675,449
	---------	---------

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 Section 1A of 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 comprehensive income has not been delivered.

For the year ending 31 December 2021 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 20 June 2022 , 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 2021

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is 1 Linkwood Place, Elgin, Scotland, IV30 1HZ.

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 only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

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

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:

Buildings	-	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.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a 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 (2020: 5 ).

5. Intangible assets

	Goodwill	Franchise fee	Total
	£	£	£
Cost
At 1 January 2021 (as restated) and 31 December 2021	140,000	3,455	143,455
	---------	-------	---------
Amortisation
At 1 January 2021 and 31 December 2021	140,000	3,455	143,455
	---------	-------	---------
Carrying amount
At 31 December 2021	–	–	–
	---------	-------	---------
At 31 December 2020	–	–	–
	---------	-------	---------

6. Tangible assets

	Land & Buildings	Plant and machinery	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2021 (as restated)	271,072	10,579	148,991	2,589	433,231
Disposals	–	–	( 11,917)	–	( 11,917)
	---------	--------	---------	-------	---------
At 31 December 2021	271,072	10,579	137,074	2,589	421,314
	---------	--------	---------	-------	---------
Depreciation
At 1 January 2021	12,469	7,245	77,355	1,995	99,064
Charge for the year	1,323	500	17,125	90	19,038
Disposals	–	–	( 8,780)	–	( 8,780)
	---------	--------	---------	-------	---------
At 31 December 2021	13,792	7,745	85,700	2,085	109,322
	---------	--------	---------	-------	---------
Carrying amount
At 31 December 2021	257,280	2,834	51,374	504	311,992
	---------	--------	---------	-------	---------
At 31 December 2020	258,603	3,334	71,636	594	334,167
	---------	--------	---------	-------	---------

7. Debtors

	2021	2020
		(restated)
	£	£
Other debtors	17,176	9,578
	--------	-------

8. Creditors: amounts falling due within one year

	2021	2020
		(restated)
	£	£
Corporation tax	58,043	44,387
Social security and other taxes	24,975	12,819
Other creditors	2,749	2,780
	--------	--------
	85,767	59,986
	--------	--------

9. Prior period errors

There has been a prior period adjustment in relation to depreciation incorrectly charged on land and associated costs. The accumulated depreciation of £36,880 at 31 December 2019 has been credited to reserves at 1 January 2020. The depreciation charged during 2020 of £4,098 has been removed resulting in a decrease in depreciation in the Income Statement of this amount.

10. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2021
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Amounts written off	Balance outstanding
	£	£	£	£	£
Mr W Ritchie	6,173	3,797	–	(1,401)	8,569
Mr G McKnockiter	3,406	3,800	–	1,401	8,607
	-------	-------	----	-------	--------
	9,579	7,597	–	–	17,176
	-------	-------	----	-------	--------

	2020
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Amounts written off	Balance outstanding
	£	£	£	£	£
Mr W Ritchie	( 31,567)	–	37,740	–	6,173
Mr G McKnockiter	( 34,337)	–	37,743	–	3,406
	--------	----	--------	----	-------
	( 65,904)	–	75,483	–	9,579
	--------	----	--------	----	-------

These loans are interest free and have no set repayment terms.

11. Related party transactions

Dividends of £87,250 (2020 - £53,250) were paid to the directors during the year.