1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cast convention. The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash-flow statement on the grounds that it is a small company.

Turnover policy
This represents net invoiced sales excluding VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant & Machinery: 25% reducing balance
Fixtures & Equipment: 25% reducing balance

Other accounting policies
4. Stocks and Work In Progress: Stock on hand is valued at the lower of cost and net realizable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

5. The company has prepared accounts in accordance with the Financial Reporting Standards for Smaller Entities.

6. Leasing and Hire Purchase: Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

7. Foreign Currencies: Assets and Liabilities in foreign currencies are translated into sterling at the average exchange ruling throughout the accounting period. Exchange differences are taken into account in arriving at the operating profit. Monetary assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date.

Fixed assets are depreciated on a reducing balance method at a rate of 25% per annum.

4Transactions with directors

In the Year Ended 30th June 2015 Mr Patrick James Burns Director introduced £38,070 into James Alexander Engineering Ltd as per note 17 in the financial statements. Included within this total of £38,070 are the following transactions;
Mr Burns introduced £14,693 from his own funds including £14,050 from his business activities as a landlord.
Mr Burns paid company expenditures to the value of £19,464.


Mr Patrick James Burns was repaid £158,971 (per note 17) from James Alexander Engineering Ltd in the Year Ended 30th June 2015. Repayments mainly were in the form of monthly repayments of loans, mortgages, and hire purchase agreements held personally by Mr Burns.
James Alexander Engineering Ltd paid £7,800 in rental charge to Director Mr PJ Burns’ parents. This rental charge was at arms length valuation.