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AQA Accounting Unit 2 - 22nd May

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Reply 120

Vampstar

Jan 13, Question 4d
Anyone know why they deducted 25000 from the share premium column and 37500 from the revaluation reserve column?
Can't seem to figure it out

And also where they got that figure '37500'

ANYONE? HELP!!! :/

Reply 121

gunner4life95

Original post by Vampstar

Because you have created a bonus issue were you essentially are giving free shares to shareholders, you have to use your reserves to fund it. In this case the £62500 worth of shares.

Usually you want to use your capital reserves first as there few uses for it, which cannot be to fund the payment of dividends

Reply 122

Vampstar

Original post by gunner4life95

So what did they do to get (37500)

62500 - 25000 = 37500 which they took away from 150,000?

Reply 123

gunner4life95

Original post by Vampstar

So what did they do to get (37500)

62500 - 25000 = 37500 which they took away from 150,000?

Yh the calculation is right. You usually use share premium first, then revaluation reserve. So as you only have £25000 of share premium you have to use your revaluation reserve to fund the £37500(62500 - 25000) needed.

Reply 124

Vampstar

Original post by gunner4life95

Thanks very much for the help! :smile:

Reply 125

gunner4life95

Original post by Vampstar

Thanks very much for the help! :smile:

Yh feel free to ask any more questions.

Reply 126

anna21

Original post by Mase123

Anna, Thank you now I understand it. :smile:

Are you ding the exam tomorrow and also do you find the shares part difficult as I am seem to find that bit very difficult. Do you know any possible ways to work out the shares bit. I have looked at the mark schemes but they seem to be very different when I compare each paper with the previous years but the similar questions on shares seem to differ in terms of calculations. By the way I am self studying so the book fails to mention these and clearly I cannot seek a teacher for help. So any help would be appreciated.

Thanks.

The first step is calculating the number of old shares by using figures from ordinary shares divide by the cost of share.

The second step is adding the number of new shares .

Then , take the total of new shares time cost of share so you will have new ordinary shares .

Reply 127

sunny_bunny

Original post by Tenioloks

6250x50= 312000
312000 divided by 5 = 62500

Where you get 5 from

Reply 128

WheezyT

Some of those adjustments..... Ayayayayayahhh

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Reply 129

sunny_bunny

That was mad!!!!! :/ question 3 :/

Reply 130

sunny_bunny

The mobile phone one :/

Reply 131

SamSamoon

Both unit 1 and 2 have been solid this year. Lower grade boundaries hopefully though

Reply 132

sunny_bunny

Original post by SamSamoon

Both unit 1 and 2 have been solid this year. Lower grade boundaries hopefully though

Yh i hope so to

Reply 133

tom_elsey

Anyone get £135,740 for the last question??

Reply 134

katiemurrall

Did everyone realise that the debenture interest didn't need to be included because it said it will be paid yearly starting that year but not until October?

Reply 135

ArsenalWenger

How was the paper guys?

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Reply 136

tom_elsey

Original post by katiemurrall

Did everyone realise that the debenture interest didn't need to be included because it said it will be paid yearly starting that year but not until October?