Depreciation
Equipment £1,200 × 20%
Dr Depreciation £240
Cr Accumulated depreciation £240
← Feature guideFrom bank statements
Bank-to-ledger and FRS 105 mapping · Year 1 worked example
From bank statements
to annual accounts.
See how five bank transactions become balanced bookkeeping, year-end adjustments, a reconciled trial balance and an explainable FRS 105 report. Every figure keeps its route back to source.
5
bank lines
3
year-end journals
£6,690
profit after tax
£0
balance difference
The controlled pipeline
Seven hand-offs. No black box.
- 01
Source evidence
Upload CSV or searchable PDF bank statements. Preserve filename, checksum and source rows.
- 02
Extraction
Parse dates, descriptions and amounts into review candidates. The source document remains unchanged.
- 03
Classification
Rules and AI suggest categories. An accountant accepts, changes or rejects each suggestion.
- 04
Double entry
Approved transactions post balanced debits and credits to the practice ledger chart of accounts.
- 05
Year-end journals
Add depreciation, accruals, tax and other non-bank adjustments with evidence references.
- 06
Reconciliation
Prove bank, control accounts and trial balance. Every debit must equal every credit.
- 07
Annual accounts
Map the reviewed trial balance into FRS 105 profit and loss and balance sheet lines.
Detailed ledger
Practice chart of accounts
7101 AWS · 7102 Vercel · 7103 Microsoft · 7104 Google Workspace
Controlled mapping
Reporting-map version
All four accounts map to Administrative expenses → Software / IT, with effective dates and review history.
Presentation
FRS 105 reporting lines
The statutory mapping can change without rewriting the underlying ledger or its evidence trail.
The starting result · existing company
Begin with a reviewed opening position.
Practice Ops downloads the latest filed accounts from Companies House, extracts balance-sheet candidates and maps them to the chart of accounts. AI proposes; the accountant edits and approves. This is a generic company with prior trading history, shown only to illustrate the import — it is unrelated to the Northstar Coffee example further down the page, which instead walks through a brand-new company's first year.
Control result
Debits £6,200 = Credits £6,200
Only this balanced, reviewed result can become the next period's opening journal.
CodeAccountSideAmountEvidence route
0100Fixed assetsDebit£2,000Prior accounts · tangible assets
1200BankDebit£4,200Prior accounts · cash at bank
2100Trade creditorsCredit£1,200Prior accounts · creditors
3000Share capitalCredit£100Prior accounts · called-up share capital
3100Retained earningsCredit£4,900Prior accounts · profit and loss account
Document ID
Links the journal back to the official filing.
SHA-256
Proves which downloaded file was reviewed.
Human approval
Prevents AI-extracted figures posting themselves.
A different, unrelated example company
Northstar Coffee Ltd
Not a continuation of the existing-company example above — that one showed how prior-year balances get imported. Northstar Coffee is a separate illustration: a brand-new micro-entity with no trading history at all. Its opening balances are nil; one £1 ordinary share is assumed to be subscribed and paid before the five bank lines below.
Bank movement: £12,000 − £2,400 − £600 − £1,200 + £3,000 = £10,800
Opening share subscription £1 + bank movement £10,800 = closing bank £10,801.
Opening equity journal
Dr Bank £1 / Cr Called-up share capital £1
This journal is included in the ledger and trial balance—not added only at presentation.
| # | Bank description | Cash | Debit | Credit | Accounting treatment |
|---|---|---|---|---|---|
| 01 | Customer receipts | £12,000 | Dr Bank £12,000 | Cr Sales £12,000 | Turnover |
| 02 | Office rent | (£2,400) | Dr Rent £2,400 | Cr Bank £2,400 | Administrative expenses |
| 03 | Bookkeeping software | (£600) | Dr Software £600 | Cr Bank £600 | Administrative expenses |
| 04 | Computer equipment | (£1,200) | Dr Equipment £1,200 | Cr Bank £1,200 | Fixed assets—not immediate expense |
| 05 | Director funds introduced | £3,000 | Dr Bank £3,000 | Cr Director loan £3,000 | Creditor—not income |
Year-end review
Bank data is not the whole ledger.
The accountant adds non-bank journals only after reviewing supporting evidence. The tax provision below is an illustrative reviewed amount—not a statement of a current statutory tax rate.
Accrued accountancy fee
Service received, invoice not yet paid
Dr Accountancy fees £500
Cr Accruals £500
Corporation tax provision
Accountant-reviewed illustrative provision
Dr Tax expense £1,570
Cr Corporation tax payable £1,570
Deterministic report formulas
The annual accounts reconcile.
Profit and loss
Year ended 31 Dec- Turnover
- £12,000
- Rent
- (£2,400)
- Software
- (£600)
- Depreciation
- (£240)
- Accountancy accrual
- (£500)
- Profit before tax
- £8,260
- Tax provision
- (£1,570)
- Profit after tax
- £6,690
Balance sheet
As at 31 Dec- Bank
- £10,801
- Equipment at cost
- £1,200
- Accumulated depreciation
- (£240)
- Total assets
- £11,761
- Director loan
- (£3,000)
- Accruals
- (£500)
- Corporation tax payable
- (£1,570)
- Net assets
- £6,691
- Called-up share capital
- £1
- Profit and loss account
- £6,690
- Shareholders’ funds
- £6,691
- Difference
- £0
Government filing deliverables
What the finished accounts become.
Reconciliation is not the final hand-off. After accountant and director approval, the same controlled figures support distinct deliverables for the company, Companies House and HMRC.
01Company and directors
Approved statutory accounts
- Profit and loss account
- Balance sheet and applicable notes
- Comparative figures and accounting policies
- Director approval and signed final copy
The company keeps the complete approved accounts and provides them to its members.
02Companies House
Accounts filing copy
- Accounts prepared for the applicable company-size regime
- Balance sheet with required statements and director details
- Profit and loss account where the filing rules require it
- Companies House acceptance reference retained after submission
The exact public filing set depends on the period, company size, eligibility and exemptions.
03HMRC
Company Tax Return package
- CT600 and any required supplementary pages
- Statutory accounts in iXBRL
- Corporation Tax computations in iXBRL
- HMRC submission receipt retained after acceptance
The tax package follows accountant review of the accounting-to-tax bridge and applicable tax rules.
Current product boundary
Practice Ops currently produces controlled accounting records, working papers, a review PDF and source JSON. These support review and permitted manual workflows; they are not yet a CT600, statutory iXBRL package or government acceptance.
Click-through audit trail
Why are net assets £6,691?
Shareholders' funds£6,691
- Formula: Total assets £11,761 − liabilities £5,070.
- Assets: Bank £10,801 + equipment £1,200 − accumulated depreciation £240.
- Liabilities: Director loan £3,000 + accrual £500 + tax provision £1,570.
- Equity: Called-up share capital £1 + profit and loss account £6,690.
- Source: Share subscription, five bank rows, three reviewed journals and their evidence references.
- Specific control: In this simplified first-year example, with no opening reserves, distributions or other equity movements, net assets reconcile to £6,691: £1 called-up share capital plus £6,690 profit after tax.
- General rule: Closing equity = opening equity + profit after tax + share capital movements − dividends ± other equity movements.
Northstar Coffee · Year 2
Continuity starts with a balanced opening TB.
The Year 1 closing balances become Year 2 opening balances. Profit does not reset equity to zero, and the accrued accountancy fee remains a liability until settled or reversed.
Opening control
Debits £12,001 = Credits £12,001
CodeOpening accountDebitCredit
1200Bank£10,801—
0100Equipment at cost£1,200—
0101Accumulated depreciation—£240
2150Accrued accountancy fee—£500
2200Corporation tax payable—£1,570
2300Director loan—£3,000
3000Called-up share capital—£1
3100Profit and loss account—£6,690
Post 2027 activity
Bank transactions and non-bank source records
Review movements
Depreciation, accruals, prepayments, dividends and tax
Roll equity forward
Opening reserves + PAT − dividends ± capital movements
Present comparatives
2027 figures alongside approved 2026 comparatives
This section defines the Year 2 continuity and comparative test case. Full statutory presentation and disclosure coverage remains subject to the applicable FRS 105 taxonomy, accounting policies and accountant review.
The final delivery
A reviewable accounts file—not just an AI answer.
The finished result is a controlled set of linked records and delivery files. Each reported number retains a route back to its ledger, journal, source row and original evidence.
01
Reviewed opening journal
Approved prior-year balances, source document ID, SHA-256 and reviewer trail.
02
Reconciled trial balance
Every account, debit and credit with a £0 control difference.
03
FRS 105 annual accounts draft
Current-period profit and loss, balance sheet, versioned reporting mappings and supporting calculations.
04
Corporation tax working papers
Accounting-profit bridge, reviewed adjustments and evidence references—not an automatic tax opinion.
05
Evidence and audit trail
Bank rows, source PDFs, journals, AI decisions, approvals and click-through figure reconciliation.
06
Controlled delivery files
Immutable review PDF and source JSON for approval, archive or permitted manual filing workflows.
Delivery boundary: review PDF and source JSON are evidence and manual-workflow files. They are not themselves a Companies House acceptance, CT600 submission, iXBRL filing or HMRC receipt. A filing is complete only when the relevant gateway returns retained government evidence.
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