• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

preparation of financial accounts

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › preparation of financial accounts

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 25, 2021 at 8:57 pm #621766
    shaunak22
    • Topics: 195
    • Replies: 32
    • ☆☆☆

    Extracts from the accounting records of Andratx Co relating to the year ended 31 December
    20X6 are as follows:

    Revaluation surplus $230,000
    Equity interim dividend paid $12,000
    Profit before tax $178,000
    Estimated tax liability for year $45,000
    8% $1 Preference shares $100,000
    Under provision for tax in previous year $5,600
    Proceeds of issue of 2,000 $1 equity shares $5,000
    Final equity dividend proposed $30,000

    What was the total of equity reported in the statement of changes in equity at
    31 December 20X6?

    A $312,400
    B $356,000
    C $348,000
    D $342,400

    the answer is D but htey have not taken the preference share capital into consideration in the statement of changes in equity why is that dont we normally consider preference share capital when preparing statment of changes in equity and why isnt it considered here?

    May 26, 2021 at 9:07 am #621792
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49595
    • ☆☆☆☆☆

    The equity shares are the ordinary shares not the preference shares (just as they are referred to in the question).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Manuga on ACCA AB Chapter 16 – How an individual can develop – Questions
  • Manuga on ACCA AB Chapter 16 – How an individual can develop – Questions
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • ngtuanthungoc on FA Chapter 4 Questions Accruals and Prepayments

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy