# shares disposal proceeds

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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

• Registered Posts: 509 Epic contributor 🐘
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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.
• Registered Posts: 85 Regular contributor ⭐
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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 25546
• Registered Posts: 124 Dedicated contributor 🦉
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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
1/2000 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

rob
• Registered Posts: 85 Regular contributor ⭐
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I am using Kaplan book, as far as I am aware bonus don't have a cost unless given .