shares disposal proceeds
valentino46
Registered Posts: 124 Dedicated contributor 🦉
hi,
im having a blank when calculating the cost of shares when sold. the company has previously bought 300 shares at £3 and then 12000 at £3.50 followed up with bonus shares basis 1/5, after balncing we then sell 5000 but i dont know what cost at which they are sold.
hope someone can help im missing the link.
thanks
rob
im having a blank when calculating the cost of shares when sold. the company has previously bought 300 shares at £3 and then 12000 at £3.50 followed up with bonus shares basis 1/5, after balncing we then sell 5000 but i dont know what cost at which they are sold.
hope someone can help im missing the link.
thanks
rob
0
Comments

Morning,
You have to apply indexation before you can find out the cost when sold. There should be indexation amounts given to you in your text book/exam paper. What are you working from? I have the kaplan workbook. the bonus shares have no cost and are just matched with the orignals but there will be two lots of indexation to work out too.0 
valentino46 wrote: »hi,
im having a blank when calculating the cost of shares when sold. the company has previously bought 300 shares at £3 and then 12000 at £3.50 followed up with bonus shares basis 1/5, after balncing we then sell 5000 but i dont know what cost at which they are sold.
hope someone can help im missing the link.
thanks
rob
Hi Rob
I just calculated according to your info! But not so 100% sure but hoping will give you an idea and also it depends on the date of purchased when you lay out your calculation.
Purchased 300 £900 (300x3)
Bonus(1 for5) 60(300/5)
Total 360 £900
Purchased 12,000 £42,000 (12,000x3.5)
Total 12,360 42,900
Disposal (5000) (17,354) (42,900/12,360 x5000)
total 7360 255460 
hi lyn,
im working from the osborne books, i am actually given the answers for the task although have attempted it myself but cannot work out the bonus share cost (if there is one) the info is as follows:
1/92 bought 3000 @ 3
1/95 bought 12000 @ 3.50
1/99 received bonus shares 1/5
1/2000 sold 5000 shares
i have calculated as follows so far:
1/92 3000 shares = 9000
indexed at 0.07 = 693
1/95 12000 shares = 42000
balanced the categories giving:
number = 15000
cost = 51000
indexed cost = 51693
1/99 bonus shares 3000 on the basis of 1/5
then i get slightly lost as when to index etc
thanks for your help on this
rob0 
I am using Kaplan book, as far as I am aware bonus don't have a cost unless given .0
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