ACCA F7 December 2008 Question 2 Candel

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  1. Avatar of MikeLittle MikeLittle says:
    September 18, 2012 at 2:50 pm

    At the end of the course notes, I seem to remember a section on “Mini Exercises”, probably mini exercises 6 ( but I’m not sure ) where there are 5 or 6 calculation questions concerning share for share exchanges.

    Try to do some of those and, if you’re still struggling, post again.

    The double entry – because it is invariably the case that the share element of the cost of acquisition has not been recorded in “the above figures” – is likely to be:

    Dr Cost of Acquisition Account with the number of shares issued * their fair market value ( will be given in a question )

    Cr Share Capital Account with the number of shares issued * their nominal value per share, and

    Cr Share Premium Account with the number of shares issued * the difference between fair market value per share less nominal value per share

    Better?

  2. Avatar of ladyjudge ladyjudge says:
    September 18, 2012 at 12:06 pm

    i cant understand the shares calculation, plus the double entry in the solution,
    help please

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