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Hi
Maybe someone can help with this. I was completing the changes in equity for the ‘XTOL’ question (June 2014).It gives closing values for share capital and share premium after a rights issue and you then work back to calculate opening values .
I applied same logic in the ‘Fresco’ June 2012 question, yet, here, the Share capital and premium figures on the trial are taken as opening figures rather than closing figures.
Am I missing something? Any help appreciated. thanks
I presume that, in Fresco, the question says that there is a suspense account that contains the credit for the rights issue proceeds. Am I correct?
It means that the rights issue (or other issue of shares) has not been recorded in the share capital and share premium accounts that are given in the trial balance.
The adjustment that you have to put through is to debit the suspense account with the full amount of shares issued x price per share and credit share capital (number of shares issued x nominal value per share) and credit share premium account (premium per share received over the nominal value)
So your opening figures in the statement of changes in equity are those as per the trial balance. then add on the share capital and share premium figures that you’ve just removed from the suspense account and that should give you the share elements of the statement of financial position
OK?
Perfect. Thanks very much for your help with that. It saved me several hours of work figuring it out.
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