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RIGHT ISSUE IAS 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › RIGHT ISSUE IAS 1

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarMikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 6, 2015 at 11:59 am #280809
    Avatarnoxchi
    Member
    • Topics: 12
    • Replies: 23
    • ☆

    cavern
    $000
    equity shares of 20 cents each note 1 50000

    (1) cavern has accounted for fully subscribed right issue of equity shares made on 1 april 2010 of one new share of every four share in issue at 42 cents each

    llama
    $000
    equity share of 50 cents each fully paid 60000
    suspense account note 4 24000

    (4)the suspense account contains the corresponding entry for the proceeds of right issue of share made on 1 july 2007.the term of the issue were one share for every four held at 80 cents per share.

    1 for 4 is common in both questions
    but it is solved differently

    cavern solution llama solution
    50000/.20=250000 60000/.50=120000
    250000*1/5=50000 120000*1/4=30000
    my question is why are we taking 1 by 4 in llama.it should be 1by 5 because if a person has four shares before issue so after issue he should have five like shown in cavern.
    sir tell me what I am misunderstanding in this?

    November 6, 2015 at 3:25 pm #280826
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    I’ve just answered this – please do not duplicate your questions

    November 6, 2015 at 4:13 pm #280851
    Avatarnoxchi
    Member
    • Topics: 12
    • Replies: 23
    • ☆

    sorry sir it was because of my browser which didnt work properly.i ve changed my browser.

    November 6, 2015 at 4:23 pm #280857
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Ok, no harm done – but I do find it frustrating when I’ve answered a question then to find that the next one is the same question!

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