ISSUE AND REDEMPTION OF SHARES [MR KAYBEE]

14/08/2021
Group Based Discussion

EXPECTED SOLUTON

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ISSUE AND REDEMPTION OF SHARES [MR KAYBEE]

Journal entries

£000 £000

Bank [400 × 1/4 × £1.20] 120

Ordinary share capital [400 × 1/4 × £1.00] 100
Share premium account [400 × 1/4 × £0.20] 20

General reserve [500 × 1/10 × 1/2] 25

Profit & loss account [500 × 1/10 × 1/2] 25
Ordinary share capital [500 × 1/10 × 1] 50

Preference share capital [40 × £1.00] 40

Share premium account [40 × £0.05] 2
Bank [40 × £1.05] 42

Profit & loss account 40

Capital redemption reserve 40

Freehold property [130 – 100] 30

Revaluation reserve [130 – 100] 30

Fixed assets 10
Creditors 10

Balance sheet as at 19 August 1994

£000 £000

Fixed assets

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ISSUE AND REDEMPTION OF SHARES [MR KAYBEE]

Fixed property at valuation 130

Other fixed assets [480 + 10] 490

620

Current assets [440 + 120 –42] 518

Less current liabilities [200 + 10] 210 308

928

Share capital and reserves

550 000 ordinary shares of £1 each [400 + 100 + 50] 550

110 000 8% redeemable preference shares of £1 each [150 – 40] 110

Capiatal redemption reserve [100 + 40] 140

Share premium account [50 + 20 – 2] 68

General reserve [45 – 25] 20

Profit and loss account [75 – 25 – 40] 10

Revaluation reserve 30

928

ALL YOUR COMMENTS ARE WELCOME [MR KAYBEE]

For a service that gives you Honour, Dignity and comfort contact us on 071 818 1255 [App/call]