IGCSE/GCSE/O & A Level/IB/University Student Forum
Qualification => GCE AS & A2 Level => Queries => Topic started by: sabbath_92 on April 28, 2010, 08:51:38 am
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I kind of need some clarifications with a few MCQ past paper questions. I'll sort them and post all of them here if I get any replies.
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Shoshou Mony (administrator) is..
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This is one of the firsts:
A company has in issue 200 000 redeemable preference shares of $1 each. These were issued many years ago at a premium of 8%
It now proposes to redeem all the preference shares at a premium of 10%, partly financed by a cash issue of 50 000 new ordinary shares at $2 each, at a price of $ 3.50
How much will the transfer to the capital redemption reseve fund be?
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A capital redemption reseve will b created for $ 100,000 (200000-50000*2)
The share premium A/C will b increased by $ 55,000 (75000-20000)
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I am here for help. Post the paper and question also please.
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A capital redemption reseve will b created for $ 100,000 (200000-50000*2)
The share premium A/C will b increased by $ 55,000 (75000-20000)
Naah, the answer is $25,000.
The amount recieved from the new issues of shares is 50,000x3.50=175,000 [The full price will be taken cos we are assuming the premium was decided so that it covers the cost of the redemption.]
The remaining amount needed for the redemption to take place is 200,000-175,000. This will be taken from a reserve and transferred to the CRRF.
I will post the lot tomorrow morning. Thanks.
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There r no assumptions in accounting, it only deals wit facts and figures.
As for da question, wat i stated b4 is correct, its as per da new syllabus.
because da old syllabus takes da 8% in 2 consideration,so different answer.
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There r no assumptions in accounting, it only deals wit facts and figures.
As for da question, wat i stated b4 is correct, its as per da new syllabus.
because da old syllabus takes da 8% in 2 consideration,so different answer.
Well according to the new syllabus you are wrong, and examiners don't care about the old syllabus. And I used the word assumption for the explanation, it's a fact.
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Could someone explain these:
May June 09- Paper 3
Question 5
Question 14
Question 30
The link to the paper is here: http://www.freeexampapers.com/Dndex.php?d=QSBMZXZlbC9BY2NvdW50aW5nL0NJRQ==
Thanks.
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Q5>=C
1500+600-210=1890(shareholders fund)
1890/2100(num of shares)=0.9(balance-sheet value of share)
Q14>=C
The average shud b found & spread over 5 years.
common mistake is making B
Q30>D
find da combition which gives da highest return,this can b found by knowing da return of investment.