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How would you usually start the statement of changes in equity. The b/f figure in this question seems to be a balancing figure and the c/f figure is taken from the question whereas the same question in June 2012 (Fresco) seems to use the figures from the question as a b/f figure. I always assumed that the figure from the question is the b/f figure. Can you please explain why this isn’t the case
I think that you are possibly looking at the share capital and share premium columns. In fresco, the share issue has not been correctly dealt with – instead of crediting share capital and share premium the Fresco chief accountant didn’t know what to do so the proceeds of the share issue were entered into a suspense account
In Atlas, the share issue has been correctly recorded so the figures in the trial balance have already been updated for the share issue and related premium.
It’s just a matter of reading the question carefully!
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