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June 2025 ACCA Exam Results

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ACCA F3 Accounting for Limited companies, the statement of Profit and Loss

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  1. sooner says

    July 8, 2013 at 1:47 am

    Goodnight to everyone.

    Chapter 13 Test Q#2 .
    Looking at the answer at the back of the book. I undertake up $225,000: I dont understand why 500, 000 is multiplied by ,75. Can any shed some light

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    • John Moffat says

      July 9, 2013 at 8:40 am

      The shares have a nominal value of $0.25, and so this is the amount that goes to share capital.
      However, they were sold at $1 each, and so the extra $0.75 goes to the share premium account.

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      • Lilly says

        September 11, 2014 at 1:09 pm

        Hi, I have another question related to Test Q2 – it says that the bonus issue was “later in the year” and the question itself is what is the company’s capital structure on 31. Dec 2005 – so why does the answer include this bonuss issue if it was after 31.Dec?

      • John Moffat says

        September 11, 2014 at 3:20 pm

        At the beginning of the question you are given the balances at 31 December 2004.

        You are then told what happened during the year ended 31 December 2005. There was a rights issue, and later in the year there was a bonus issue. The bonus issue was therefore made later in the same year i.e. during the year ended 31 December 2005.

  2. Amna Zaman says

    June 12, 2013 at 7:50 am

    Plz give me full detailed answer. Thanks

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    • John Moffat says

      June 12, 2013 at 9:32 am

      (all the figures below are in millions!)

      First they have a 1 for 2 bonus issue. As there are currently 100 shares in issue, this means that they issue another 50 shares (so the total number of shares is now 150).
      Since they are $1 shares, the share capital increases by the nominal value of 50 to a total of 150. Because it is a bonus issue, the share premium reduces by 50 to 30.

      Then they have a 2 for 5 rights issue. As there are 150 shares in issue after the bonus, this means that they issue another 2/5 x 150 = 60 shares.
      The share capital increased by the nominal value of 60 to a total of 210.
      The share premium increases by the excess of the amount paid above the nominal value – i.e. 60 shares at 0.50 = 30. The balance was 30 after the bonus issue so it increases by another 30 to a total of 60.

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  3. Amna Zaman says

    June 11, 2013 at 10:00 am

    Can someone plz let mw know about test question 5 ? How to solve a question which has first bonus issue and then rights issue? Plz give explanations of each step. . Thanks

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    • John Moffat says

      June 12, 2013 at 7:42 am

      Have you checked the answers at the back of the course notes ?

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      • Amna Zaman says

        June 12, 2013 at 7:44 am

        Yes…I did but there is no explanation in the answers.

  4. Accountaholic says

    March 10, 2013 at 12:00 pm

    Hi,

    Can you please explain test Q 4 please?
    Thanks.

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  5. avishco says

    March 8, 2013 at 5:57 am

    For example 2 right issue is @ $3 why not 2000@ $3??
    It is mention as 2000@ $2??

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  6. chelseadundalk says

    January 20, 2013 at 9:49 pm

    Test Q 4 – The answer per the notes is D (dividends dont appear on the Income Statements or Bal. Sheet. I know they dont appear on the Income Statement, but I was pretty sure dividends form part of the retained earnings? So why is the answer nil in this case? Thanks in advance.

    Oh, and lectures are a really great help. Many thanks!

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    • John Moffat says

      June 12, 2013 at 7:42 am

      Dividends certainly reduce the retained earnings, but they do not appear as a separate item on the Balance Sheet – they appear in the Statement of changes in equity

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  7. nhs14 says

    September 30, 2012 at 6:46 pm

    This chapter is my weakest area!!!

    Can someone please explain question 2 in the Tests Please

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    • John Moffat says

      October 1, 2012 at 3:26 pm

      @nhs14, Have you looked at the answers on page 200 of the Course Notes?

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      • nhs14 says

        October 1, 2012 at 11:48 pm

        @johnmoffat,

        yeah I don’t know how to get the 750 000

      • John Moffat says

        October 2, 2012 at 5:20 pm

        @nhs14, At the start of the year there were 500,000 shares in issue. They then had a rights issue of 1 for 2, which means that they issued 1 new share for every two existing shares – i.e. they issued another 250,000 shares. This means that they then had 750,000 shares in issue.

      • nhs14 says

        October 4, 2012 at 3:22 am

        @johnmoffat,

        Thank you very much

  8. mohammadbangash says

    June 10, 2012 at 3:55 am

    Nice Explaintion but nt like other chapters some topics are missing Like
    Ordinery share and prefrence share Loan stock Revlauation surplus etc anyways thanks alot

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    • John Moffat says

      August 2, 2012 at 9:36 am

      @mohammadbangash, The lecture makes it clear at the beginning that it will not read the course notes to you – you must read them properly yourself.
      Ordinary and preference shares are dealt with in paragraph 4 of the notes; loan stock is dealt with in paragraph 8; and revaluation surplus is dealt with in paragraph 6 (and also in the earlier chapter on depreciation).

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  9. hwaliji says

    June 8, 2012 at 8:02 am

    great lecture!!!!!!!!!
    can somebody help me with the following qns
    how do we treat rights issue, if their payment consideration is below nominal value e.g if nominal value is $2/share and there is a rights issue at $1/share

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    • John Moffat says

      June 8, 2012 at 9:43 am

      @hwaliji, a rights issue will usually be at less than the market value per share, but it can not be at less than the nominal value.

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    • MikeLittle says

      October 2, 2012 at 10:50 am

      @hwaliji, It would actually be illegal to issue shares – whether an original issue or a further rights issue – for an amount less than their nominal value! They can be – and invariably will be – issued at a price which represents a discount on their market value, but NEVER at a discount on nominal value

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  10. mbabgong says

    January 27, 2012 at 6:21 pm

    I’m so please and grateful for knowing this site. thanks to the team in place. please can someone help me with BPP notes

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  11. Fahim Farooq says

    January 27, 2012 at 12:32 pm

    it is really helpful,,,, thanks

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  12. marva25 says

    November 27, 2011 at 4:15 am

    This is very helpful, thank you Open Tuition.l

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  13. umerkhayam says

    October 26, 2011 at 6:52 pm

    It helped alot but please give us intro of debenture loans, dividends and bonus issue

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  14. zakir117 says

    October 26, 2011 at 7:58 am

    share us complete chapter

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  15. neogugu says

    October 6, 2011 at 7:56 pm

    very helpful

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      November 24, 2013 at 1:03 am

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    July 10, 2011 at 12:20 pm

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  17. wixibix says

    July 3, 2011 at 7:52 pm

    this has been explained very well indeed.. The best part about this video is that incase you didn’t understand something the first time you can always go back and confirm it

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  18. ansarahmad says

    May 12, 2011 at 12:47 pm

    Wonderful Explaination

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  20. yentumi says

    February 13, 2011 at 6:43 pm

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