I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART F: PREPARING BASIC FINANCIAL STATEMENTS 

 

344

 

1 

True. The maximum amount that a shareholder has to pay is the amount paid on their shares. 

2 

Issued share capital is the par value of shares issued to shareholders. Called-up share capital is the 

amount payable to date by the shareholders. 

3 

Ordinary shares can be paid any or no dividend. The dividend attaching to preference shares is set from the 

start. 

4 

Loan stock are long-term loans, and so loan stock holders are long-term payables. Equity shareholders 

own the company. 

5 

B 

 (50,000 × 25c) 

6 

A bonus issue is financed by capitalising reserves. A rights issue is paid for by the shareholders taking up 

the shares. 

7 

C 

Capitalisation of 1:1 means a further 400,000 25c shares are issued. This represents $100,000. 

This $100,000 is taken from share premium account first ($50,000) and the balance of 

$50,000 is taken from retained earnings, leaving (75,000 – 50,000) = $25,000. 

 

 

 

 

 

Now try ... 

 

Attempt the questions below from the Practice Question Bank 

 

Qs 73 – 76