F3 Please help

I assume you have been through our course notes and all the lectures.

If so then it is a question of practicing as much as possible. There are flashcards on here and a mock examination. Most important to is have a revision kit/exam kit from one of the approved publishers and to practice questions under time pressure.

Are you attempting the BPP/Kaplan questions under exam conditions (i.e. strict timing).
For most people it is the time constraint that is the biggest problem.

Well when you do the exam, leave these questions until the end!

If you have specific problems and you say what they are on here then I will try and help.

If the company issues new share and they write 1 for every 5, it means that they issue one new share for every 5 that you already have. So….if you have 5 shares at the moment then you get one more. If you have 10 shares at the moment then you get 2 more (1/5 x 10) and so on.

For question 2:

At the start of the year there are 500,000 shares. The company has a 1 for 2 rights issue and so that means that they issue 500,000 x 1/2 = 250,000 new shares (and so the total number of shares in now 750,000)
The nominal value of these is 25c each, so in total 250,000 x 0.25 = $62,500, and so the total share capital increases to 125,000 + 62,500 = 187,500.

However, shareholders had to pay $1 for each of these 250,000 shares. The nominal value of 0.25 goes to share capital, but the extra $0.75 per share goes to share premium. The total extra is 250,000 x 0.75 = $187,500, and so the total on the share premium account increases to 100,000 + 187,500 = $287,500

Next they have a bonus issue (free shares). It is 1 share for every 5, and since at the moment they have 750,000 shares (see above) it means that they issue 1/5 x 750,000 = 150,000 new shares.
The nominal value per share is $0.25 and so the total nominal value is 150,000 x 0.25 = $37,500. So the total share capital increases to 187,500 + 37,500 = $225,000

Since this was a bonus issue, the shareholders did not pay for the shares and so the share premium account has to fall by the $37,500. This means that the share premium account is now $287,500 – $37,500 = $250,000.

Hi Vaishalee .. Am too writing F3 CBE by this Sep 2nd.. Am looking for a study buddy esp for revision.. Hope we can help each other with revision and mock.

vaishaalee: in answer to your question, because it is CBE all topics are likely to be examined – it is impossible just to concentrate on specific topics.

hi Vaishalee

i want to give my cbe around 8th sep so that i can atleast start preparing for dec exams. I am from London. i have decided from today i ll go through all the lectures and start doing exam kit from nx week. do u want to share ur plans?? i work but i hv time during evenings and weekends.

wats ur email? i ll reply u.