PTC - Section 2 Shares

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:27AM in AAT student discussion
Hello everyone, i am trying to get my head around how to work out the shares in section 2, in every exam paper it seems to be different, does anyone have a good way of remembering how to work them out, am i struggling quite a bit with this :( any help would be much appreciated!
Thanks
Becky

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PTC - Section 2 Shares

    The most important rule is to identify which shares you are disposing of

    The identifcation rules are to dispose of shares in the following order

    1) Shares acquire on the same day as the disposal
    2) Shares acquired 30 days after the disposal (strange I know!)- on a FIFO basis
    3) Shares acquired post April 1998 - on a LIFO basis
    4) The 1985 pool which is frozen at Apr 98 - on an AVCO basis

    So firstly, you need to make sure you know which shares to dispose of first, and then carry out the calculations one by one.

    The only advice I can give is to do loads of questions, bearing in mind the rules above

    If you require further help please ask
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PTC - Section 2 Shares

    Thank you very much, i will put this into pracise! thanks Becky
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PTC - Section 2 Shares

    I've some notes on dealing with shares here

    Shares may appear tricky to deal with but it's really just a matter of being familiar with the process. As sjb says, keep the rules in mind and do lots of questions.

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