accounting nov 2006 p4 q1 part b

[raza-rocker]

please help me with the balance sheet
how the amount for bank is calculated
how bank overdraft of $ 100,000 is eliminated and made bank in current asset of $ 160,000 ... how ??????????
and how ordinary shares and share premium is calculated in this question

 

[raza-rocker]

any1 plss

 

[raza-rocker]

help help help
pleaseeeeeeee :Bravo:

 

[ks136]

Hi!
For the bank balance part:
unadjusted bank balance= (100000)
Sale of investment = 235000
Freehold land (125000-100000) =25000
Adjusted Closing bank balance= 160000

 

[ks136]

Ordinary shares part:
Ordinary shares as per balance sheet: 500000
As they have been reduced to .25 pr share.
Ordinary shares of .25 each= 500000X.25=125000
~~~~~
Issue of shares: 2 shares for every 1 pref dividend in arrears
Pref dividend in arrears= 200000X8/100 X3
=48000
2 Ordinary shars per 1 pref dividend = 48000X2
=96000
Now as ordinary shares have been reduced to 0.25 pr share...so it will be equal to 96000X.25=24000
~~~~
Total O. shares=125000+24000
=149000

 

[ks136]

As issue of ordinary shares has been financed by share premium account so Share premium account=250000-24000=226000