Limited Companies

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Private Limited Companies

  • At least one shareholder
  • No minimum requirement for share capital
  • Shares cannot be traded publicly but are transferrable between individuals
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Public Limited Companies

  • Issued share capital - minimum of £50,000
  • At least 2 directors and 2 shareholders
  • PLC may raise money on the public stock exchange
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Final Accounts of a Limited Company

For internal use - final accounts drawn up similarly to sole trader or partnership- i.e. Income Statement and Balance Sheet

Main Difference - Income Statement is followed by a Statement of Changes in Equity (shows how profit for year has been distributed, and links to the balance sheet)

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Accounting Personnel in a Limited Company

Financial Accountant- prepare final accounts for both internal and external use

Management Accountant (cost accountant)- prepare budgets and reports relating to future business of company

Auditors- check that proper accounting procedures have been followed. 

Internal- employees of the company

External- independant of the business

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