Blunt Knife Co. Limited
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Notes to the Accounts |
for the period from 23 March 2021 to 31 March 2022
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1 |
Accounting policies |
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Basis of preparation |
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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).
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The accounts are presented in sterling which is the functional currency of the company and rounded to the nearest pound. |
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Going concern |
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The financial statements have been prepared on the going concern basis following a commitment by the directors to continue to support the company's working capital requirements with personal funds. |
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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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Stocks |
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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.
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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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Cash and cash equivalents |
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Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
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Financial instruments |
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Financial instruments comprise financial assets and financial liabilities which are recognised when the company becomes a party to the contractual provisions of the instrument. Financial instruments are classified as "basic" in accordance with FRS 102 and are accounted for at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash flows over the life of the financial assets or liability to the net carrying amount on initial recognition. Discounting is not applied to short-term receivables and payables, where the effect is immaterial. Financial assets comprise cash, trade debtors and other debtors. Financial liabilities comprise bank overdrafts, trade creditors and other creditors. |
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2 |
Employees |
2022 |
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Number |
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Average number of persons employed by the company |
0 |
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3 |
Debtors |
2022 |
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£ |
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Other debtors |
4,275 |
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4 |
Creditors: amounts falling due within one year |
2022 |
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£ |
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Trade creditors |
98 |
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Other creditors |
14,964 |
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15,062 |
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5 |
Other financial commitments |
2022 |
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£ |
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Total future minimum payments under non-cancellable operating leases |
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20,000 |
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6 |
Loans from directors |
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Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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Emma Sweeney (appointed 23 March 2021)
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Loan (interest free, repayable on demand)
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- |
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813 |
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- |
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813 |
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Marian Blythe (appointed on 23 March 2021)
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Loan (interest free, repayable on demand)
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- |
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13,395 |
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- |
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13,395 |
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- |
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14,208 |
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- |
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14,208 |
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7 |
Other information |
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Blunt Knife Co. Limited is a private company limited by guarantee and incorporated in Scotland Its registered office is: |
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41 Thistle Street |
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Edinburgh |
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EH2 1DY |