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Economics, Accounting & Business: Post your doubts here!

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vineeth jain

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wajiman said:
use the three rules mentioned on the partial financing of the shares and then you will get to know for the retained earnings. first rule is having a small error. let me correct it:
1) Share premium received on original issue ( the premium received on the shares at the time of issuance that are being redeemed now )
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can u explain with an example???
 
Esme

Esme

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vineeth jain said:
what will happen if new shares are issued at premium???
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It doesn't matter. When you create CRR deduct the entire amount of new share issue (including premium, if there is any) from the nominal value of shares redeemed
 
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vineeth jain

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Esme said:
It doesn't matter. When you create CRR deduct the entire amount of new share issue (including premium, if there is any) from the nominal value of shares redeemed
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what if that premium is used to pay premium on redeemed shares
 
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vineeth jain

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Esme said:
You don't get it, do you?? CRR is always calculated in that manner!
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then why in the first question on the paper in the link below is calculating crr in a diffenent manner... even though newly issued shares are issued at premium , the are not conisdering it ...
why???

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w02_qp_4.pdf
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w02_ms_4.pdf
please clear this doubt
 
Esme

Esme

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vineeth jain said:
then why in the first question on the paper in the link below is calculating crr in a diffenent manner... even though newly issued shares are issued at premium , the are not conisdering it ...
why???

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w02_qp_4.pdf
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w02_ms_4.pdf
please clear this doubt
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Why are you solving such old papers ? 2002? A lot of things have changed since then...
 
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shaahid

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o
Esme said:
Never...absolutely never. It used to be included before but not anymore. If you have the new edition of Accounting by Harold Randall, refer to page 161. It is stated clearly there above Example 4
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oh thanks! one more thing, in the statement of cash flows under which heading do you show dividends paid? Also proposed dividend dosen't come here either right?
 
Esme

Esme

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shaahid said:
o
oh thanks! one more thing, in the statement of cash flows under which heading do you show dividends paid? Also proposed dividend dosen't come here either right?
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Yep proposed are not included in the statement of cash flows either. Dividends are under the heading 'Cash flows from financing activities'

WayneRooney10 said:
WOAAAH! Thaank you sooo much Esmeeee! That'll sort some stuff out for me! :)
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You're welcome
Hopefully :)
 
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