Sokol Books Limited Filleted accounts for Companies House (small and micro)

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COMPANY REGISTRATION NUMBER: 04218764

SOKOL BOOKS LIMITED

FILLETED UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 July 2020

SOKOL BOOKS LIMITED

STATEMENT OF FINANCIAL POSITION

31 July 2020

	2020		2019
Note	£	£	£

FIXED ASSETS

Intangible assets	5	1	1
Tangible assets	6	4,580	5,412
		-------	-------
		4,581	5,413

CURRENT ASSETS

Stocks		1,378,365	1,094,720
Debtors	7	279,574	243,261
Cash at bank and in hand		194,421	172,928
		------------	------------
		1,852,360	1,510,909

CREDITORS: amounts falling due within one year	8	318,141		218,072
		------------		------------
NET CURRENT ASSETS			1,534,219	1,292,837
			------------	------------
TOTAL ASSETS LESS CURRENT LIABILITIES			1,538,800	1,298,250

CREDITORS: amounts falling due after more than one year	9		150,000	150,000

PROVISIONS

Taxation including deferred tax	870	825
	------------	------------
NET ASSETS	1,387,930	1,147,425
	------------	------------

SOKOL BOOKS LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 July 2020

	2020		2019
Note	£	£	£

CAPITAL AND RESERVES

Called up share capital	22,100	22,100
Profit and loss account	1,365,830	1,125,325
	------------	------------
SHAREHOLDERS FUNDS	1,387,930	1,147,425
	------------	------------

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 income and retained earnings has not been delivered.

For the year ending 31st July 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges his 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 31 July 2021 , and are signed on behalf of the board by:

C J Sokol
Director

Company registration number: 04218764

SOKOL BOOKS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31st JULY 2020

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 475 Salisbury House, London Wall, London, EC2M 5QQ.

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.

COMMISSION PAYABLE

The commission paid on the purchase of books from auction houses is shown as an expense and not as part of the cost of the purchase.

REVENUE RECOGNITION

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax, only for items where the book sale has been approved by the customer.

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.

FOREIGN CURRENCIES

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

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	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

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:

Furniture & Fixtures	-	10% reducing balance
Computer Equipment	-	33% straight line
Leasehold Improvements	-	20% straight line

IMPAIRMENT OF FIXED ASSETS

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

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.

PROVISIONS

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

FINANCIAL INSTRUMENTS

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 3 (2019: 3 ).

5. INTANGIBLE ASSETS

	Goodwill
	£
Cost
At 1st August 2019 and 31st July 2020	11,000
	--------
Amortisation
At 1st August 2019 and 31st July 2020	10,999
	--------
Carrying amount
At 31st July 2020	1
	--------
At 31st July 2019	1
	--------

6. TANGIBLE ASSETS

	Fixtures and fittings	Equipment	Leasehold Improvements	Total
	£	£	£	£
Cost
At 1st August 2019 and 31st July 2020	18,658	6,454	16,365	41,477
	--------	-------	--------	--------
Depreciation
At 1st August 2019	13,571	6,130	16,364	36,065
Charge for the year	509	323	–	832
	--------	-------	--------	--------
At 31st July 2020	14,080	6,453	16,364	36,897
	--------	-------	--------	--------
Carrying amount
At 31st July 2020	4,578	1	1	4,580
	--------	-------	--------	--------
At 31st July 2019	5,087	324	1	5,412
	--------	-------	--------	--------

7. DEBTORS

	2020	2019
	£	£
Trade debtors	167,431	167,530
Other debtors	112,143	75,731
	---------	---------
	279,574	243,261
	---------	---------

8. CREDITORS: amounts falling due within one year

	2020	2019
	£	£
Trade creditors	188,673	139,272
Corporation tax	122,578	49,045
Social security and other taxes	2,179	609
Other creditors	4,711	29,146
	---------	---------
	318,141	218,072
	---------	---------

The overdraft is secured by way of a personal guarantee by C J Sokol .

9. CREDITORS: amounts falling due after more than one year

	2020	2019
	£	£
Bank loans and overdrafts	150,000	150,000
	---------	---------

10. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

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

	2020
	Balance brought forward	Advances/ (credits) to the director	Balance outstanding
	£	£	£
C J Sokol	50,000	25,000	75,000
	--------	--------	--------

	2019
	Balance brought forward	Advances/ (credits) to the director	Balance outstanding
	£	£	£
C J Sokol	50,000	–	50,000
	--------	----	--------

Interest on the loan to the director is charged at 3% per annum. The loan is repayable on demand.

11. RELATED PARTY TRANSACTIONS

The company was under the control of C J Sokol throughout the current and previous year. C J Sokol is the sole director and only shareholder. During the year C J Sokol received a dividend of £57,100 (2019 - £-). During the year, Sokol Books Limited paid £18,000(2019 - £18,000) to C J Sokol as rent due for the premises from which it trades.