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company

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › company

  • This topic has 9 replies, 3 voices, and was last updated 10 years ago by John Moffat.
Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • November 26, 2014 at 3:50 am #213270
    archana
    Member
    • Topics: 24
    • Replies: 62
    • ☆☆

    sir, plz help me with these dividend stuffs.. where do these following dividend are adjusted in financial statements.?

    1. redeemable preference dividend paid (RPD)
    2.IRPD paid
    3.ordinary dividend paid
    4interim dividend paid ( all these are paid before accounting period )

    5. redeemable preference dividend payable
    6.IRD payable
    7.Ordinary dividend payable

    November 26, 2014 at 10:37 am #213374
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    1 finance cost in SOFP
    2 Dividend in SOCE
    3 Dividend in SOCE
    4 Dividend in SOCE
    5 current liability in SOFP
    6 current liability in SOFP
    7 Provided declared before the year end then current liability in SOFP (if only proposed then nowhere)

    November 26, 2014 at 12:28 pm #213414
    Carol
    Member
    • Topics: 2
    • Replies: 12
    • ☆

    Sir:
    Question #2
    At 31 December 2004 a company’s capital structure was as follows:

    Ordinary share capital. 125,000
    500,000 shares of .25c each
    Share premium account. 100,000

    In the year ended 31 December 2005 the company made a rights issue of 1 share for every 2 held at $1 per share and this was taken up in full. Later in the year the company made. Bonus issue if 1 share for every 5 held, USING THE SHARE PREMIUM ACCOUNT FOR THE PURPOSE.

    What was the capital structure at December 31, 2005?

    My calculations:

    # shares. Share capital. Share premium
    500,000. 125,000. 100,000
    250,000. X .25. 62,500. 187,500. (250,000 @.75)

    Where do I go from here. And, given the answer, I must have done something wrong.

    Thanks

    November 26, 2014 at 3:56 pm #213476
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You now have 750,000 shares, so a bonus issue of 1 for 5 means issuing another 150,000 shares. Share capital will increase by 150,000 x 0.25, and share premium will decrease by the same amount.

    December 4, 2014 at 2:24 am #217169
    archana
    Member
    • Topics: 24
    • Replies: 62
    • ☆☆

    1.sir, what is the double entry for redeemable preference dividend paid?

    2.Which of the following statements about the financial statements of limited liability companies are
    correct according to International Financial Reporting Standards?
    1 In preparing a statement of cash flows, either the direct or the indirect method may be used.
    Both lead to the same figure for net cash from operating activities.
    2 Loan notes can be classified as current or non-current liabilities.
    3 Financial statements must disclose a company’s total expense for depreciation, if material.
    4 A company must disclose by note details of all adjusting events allowed for in the financial
    statements.
    A 1, 2 and 3 only
    B 2 and 4 only
    C 3 and 4 only
    D All four items

    sir, why option 4 not correct?

    December 4, 2014 at 10:51 am #217261
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    1. Cr Cash; Dr preference dividend.
    (The dividend is shown in the SOFP as a finance charge because they are redeemable)

    2. It is only non-adjusting events that are disclosed by note (if material). For adjust events we change the statements and we do not write a note saying that we have changed them.

    December 5, 2014 at 5:02 am #217774
    archana
    Member
    • Topics: 24
    • Replies: 62
    • ☆☆

    sir, redeemable preference dividend paid shown in SOCI or in sOFP? until now, I hab been adjusting this in SOCI but i got anwer correct.. how?? 🙁

    December 5, 2014 at 7:52 am #217812
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    SOPOL as a finance charge

    It only appears in SOFP if it has not been paid and is still owing.

    December 5, 2014 at 1:02 pm #217962
    archana
    Member
    • Topics: 24
    • Replies: 62
    • ☆☆

    sir, dividend payable for ordinary shares and preference shares adjusted in SOCIE or not?

    December 5, 2014 at 1:28 pm #217985
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Ordinary dividends paid or declared appear in the SOCE

    Dividends on irredeemable preference shares appear in the SOCE

    Dividends on redeemable preference shares appear in the SOPOL as finance charge.

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