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    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!!! :/
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    (Original post by 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!!! :/
    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
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    (Original post by gunner4life95)
    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
    So what did they do to get (37500)

    62500 - 25000 = 37500 which they took away from 150,000?
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    (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.
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    (Original post by gunner4life95)
    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.

    Thanks very much for the help!
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    (Original post by Vampstar)
    Thanks very much for the help!
    Yh feel free to ask any more questions.
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    (Original post by Mase123)
    Anna, Thank you now I understand it.

    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 .
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    (Original post by Tenioloks)
    6250x50= 312000
    312000 divided by 5 = 62500
    Where you get 5 from
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    Some of those adjustments..... Ayayayayayahhh

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    That was mad!!!!! :/ question 3 :/
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    The mobile phone one :/
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    Both unit 1 and 2 have been solid this year. Lower grade boundaries hopefully though
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    (Original post by SamSamoon)
    Both unit 1 and 2 have been solid this year. Lower grade boundaries hopefully though
    Yh i hope so to
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    Anyone get £135,740 for the last question??
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    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?
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    How was the paper guys?

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    (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?
    Nooo it was yearly from 2012!
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    (Original post by tom_elsey)
    Nooo it was yearly from 2012!

    Starting October bruv..... Happened to me too

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    Was the bank balance question a continuing from the phone question?

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    (Original post by tom_elsey)
    Nooo it was yearly from 2012!
    It said it was starting in october though, and the income statement was dated april?
 
 
 
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