Company audit balance sheet

This discussion clarifies how to present share capital on a company's balance sheet for FY 20-21 when incorporation occurred in Sep 2020 but the bank account and initial transactions only happened in Dec 2021. It explains that the balance sheet cannot show zero share capital, as a company requires minimum paid-up capital upon incorporation. Preliminary expenses should be shown as deferred assets, and share capital and bank accounts must be reflected on the liability and asset sides respectively, even if initial compliance activities were delayed.