Matching shares help!!

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LinziAAT
LinziAAT Registered Posts: 1
in AAT Level 4 (Level 8 in Scotland)
Hi I keep getting confused with matching shares for the FA 1985 pool!

I have this question...

Carol purchased and sold shares in ceeco ltd
10 Apr purchased 5000 for £15000
12 Jan sold 1800 for £4000
1 Feb purchased £6800 for 21080
31 Mar sold 10000 for £4000

a. Gain or loss o shares on 12 Jan 2015
b. Gain or loss on shares on 31 Mar 2015

I know a is 1580 loss but I am unsure why we use the Feb shares? Is it because we have matched them with the FA 1985 pool? When it gets to the FA pool I come to a barrier! Any help is appreciated!

For b I assume the cost should be 30500 can anyone explain/show how I get a 9500 gain?

Thanks!

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  • MMG
    MMG Registered Posts: 5
    Options
    5000 for £15000 - 10 Apr purchased
    5000 for £15500- 12 Jan disposal (you have to add because you sold less shares than purchased/or you purchased more shares than you sold, 6800-1800=5000, and cost: 21080/6800x5000=15500

    a. Proceed: 4000
    cost: (5580)
    loss 1580

    how to get 5580?
    £21080/6800x1800

    next part, after disposal we've got:
    10000 for £30500
    (10000) for (£30500)- disposal

    b. proceed £40000
    cost: (30500)
    Gain :9500

    That is my way how to find solution :)

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