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50 Cards in this Set
- Front
- Back
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Share issue price
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Price of share when issued
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(Share) nominal value
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Unchanging value attributed to share to ensure no. of shares can always be calculated from aggregate share value
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P BET
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Differences in company for exam. (Provisions Borrowings Equity Tax (on profit)
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2 share classes (for exam)
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Ordinary / Preference
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Order of payment
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Creditors Preference (SH) Ordinary (SH)
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Preference share fixed or variable rate of dividend
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Fixed
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*Irredemable pref shares: a/cs
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Share value: share capital / Dividends: *check (appropriation of profit)
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Redeemable pref shares a/cs
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Share value: NCL (long term borrowings) / Dividends: Exp (finance cost)
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Purposes of (share) reserve a/cs
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Value of shares over called up called up value
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Reserve a/cs: 3 types
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Share premium a/c, Retained earnings, General (other) reserves
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C. Retained earnings
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[Accum. Profit - dividends]
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General (other) reserves a/c
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Rainy day fund
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Rights issue
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Shares sold at discount to existing SH
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Bonus issue (aka. capitalisation issue / scrip issue)
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Issue of shares for free to exisiting SH
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Purpose of bonus issue
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Drives down value of shares (by increasing supply) to make more marketable
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In exam: only means of Dr share premium a/c
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Bonus issue
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Bonus issue taken from value of which a/c
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Share premium (possibly retained earnings)
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Bonus issue: value of 1 share
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Nominal value
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Accounting for dividends
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Paid: Dr Retained earnings Cr Cash. Declared: Dr Retained earnings Cr. Div payable
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*Different terms for loans
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Debenture loan, bond,
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Interest on loans: which a/c?
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Exp (finance cost)
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Provision
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Liability of uncertain timing (e.g. warranties offered on cars)
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J. Provision
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Dr Exp (admin exp) Cr. Provision
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J. Dividend payment
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Dr. Retained earnings Cr. Cash
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J. Dividend declaration
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Dr. Retained earnings Cr. Dividends payable
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J. Bonus issue
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Dr. Share prem (or Dr. ret earnings) Cr Sh capital
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J. Rights issue
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Dr. Cash Cr. Share cap Cr. Share prem
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J. Pay interest on a loan
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Dr. Exp (finance cost) Cr. Cash (or Cr. TP)
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Not to be included in tax payable a/c
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Accruals
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J. Provision for est. tax due
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Dr. Tax expense Cr. Tax payable
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J. Tax payment
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Dr. Tax payable Cr. Cash
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Allocation of costs: 3 categories
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COS. Distribution costs. Admin exp
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Distribution costs includes (SCAMS)
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Salary (of marketing), Carriage out, Advertising, MV depreciation, Storage
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Admin exp includes (MILD Depreciation)
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Maintenance, IDE, Loss on disposals, Discounts allowed, Depreciation of other NCAs
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Other operating income includes (DRIPD)
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Discounts received, Rent, Interest on savings, Profit on disposals, Dividends on investments
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Finance cost (exp) (ID)
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Interest payable, Dividends on redeemable pref shares
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J. Sum for est tax liability
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Dr tax exp Cr tax payable
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J. Tax payment (once agreed)
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Dr tax payable Cr Cash
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UK GAAP
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UK generally accepted accounting practice (legislative and non legislative)
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Statutory accounts
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FS Ltd cos obliged to submit annually
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UK. Balance sheet
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SOFP
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UK. P/L, income statement
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SPL
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UK. Fixed asset
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NCA
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UK. Stock
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Inventories
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UK. Bad debt
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Irrecoverable debt
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UK. Retained earnings
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Retained profits (reserve)
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UK. Creditors
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Payables
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UK. Creditors > 1 yr
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NCL
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UK. Creditors < 1yr
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CL
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UK. Turnover
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Revenue
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