Need answer to this shares question please!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am having such a bad time and just wondered if anyone could have a go at this question and let me know what answer you get!!!??<BR><BR>1/1/92 bought 3000 shares @ £3.00 ea<BR>1/1/95 bought 12000 shares @ £3.50 ea<BR>1/8/97 rights issue 2000 shares @ £3.00 ea<BR>1/1/99 bonus issue 1 for 5<BR>19/11/99 bought 6000 shares @ £4.00<BR>1/1/01 sold 5000 shares @ £6.00<BR>30/04/04 sold all remaining shares for £90,000<BR><BR>If anyone could help me I would be so grateful, just need to know how far off I am!!! Thanks to all you guys out there!!<BR><BR>

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Need answer to this shares question please!!!

    is it a personal sale of shares or a ltd company? do you have any indexation figures?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Need answer to this shares question please!!!

    Hi there, sorry I forgot to mention that! It is personal and the indexation is the standard one that is supplied in the study books, can you shed any light please??<BR><BR>Ta V much
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Need answer to this shares question please!!!

    Hello,<BR>here is the working but it should have index figure for the total price to be raised up but this is just a working how it goes without indexation.<BR><BR>01/01/1992 Purchase of Shares 3000 9000<BR> Sub Total 3000 9000<BR>01/01/1995 Purchase of Shares 12000 42000<BR> Sub Total 18000 60000<BR>01/08/1997 Rights Issue 2000 6000<BR> Sub Total 20000 66000<BR>01/01/1999 Bonus Issue 4000 <BR> Sub Total 24000 66000<BR>19/11/1999 Purchase of Shares 6000 24000<BR> Sub Total 30000 90000<BR>01/01/2001 Sale of Shares 5000 30000<BR> Sub Total 25000 60000<BR>30/04/2004 Sale of Shares 21400 90000<BR> Profit on sale of Shares 30000<BR><BR>Hope it helps<BR><BR>Arjun<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Need answer to this shares question please!!!

    Hi,<BR><BR>I think I have worked out the solution to your shares question. C what you think ............<BR><BR>The disposal of 21400 shares would be matched as follows:<BR><BR>1. 1000 from the 6000 purchased on 19.11.99 (of which 5000 already disposed)<BR>2. 20400 from the 1985 FA pool<BR><BR>1. Disposal proceeds 4206 (£90000/21400*1000)<BR> Cost (4000) (1000*£4.00)<BR> Untapered gain 206 Chargeable at 90% (4 years ownership)<BR><BR>2. Disposal proceeds 85794 (£90000/21400*20400)<BR> Cost (57000)<BR> Unindexed Gain 28794<BR> Indexation (6568)<BR> Untapered gain 22226 Chargeable at 75% (6 years ownership + 1 bonus year)<BR><BR>1985 FA Pool - Workings<BR>Date Details No of shares Cost Indexation Indexed Pool<BR> £ £ £<BR>01.01.92 Purchase 3000 9000 - 9000<BR>01.01.95 Indexation 690 690<BR>Total 3000 9000 690 9690<BR>01.01.95 Purchase 12000 42000 - 42000<BR>Total 15000 51000 690 51690<BR>01.08.97 Indexation 4426 4426<BR>Total 15000 51000 5116 56116<BR>01.08.97 Rights Issue 2000 6000 - 6000<BR>Total 17000 57000 5116 62116<BR>05.04.98 Indexation 1452 1452<BR>Total 17000 57000 6568 63568<BR>01.01.99 Bonus Issue 3400 <BR>Total 20400 57000 6568 63568 <BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Need answer to this shares question please!!!

    Just realised, it doesn't come out in the same format that I typed it, u'll have to excuse me, I'm new to this! If you give me ur email address, i'll send it to you in xcel.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Need answer to this shares question please!!!

    Hi Jayne<BR><BR>Thanks for all your time and effort you have put into answer this question for me, you will definetly go to heaven.<BR><BR>I haven't got my answers in front of me right now but looks like your answers could be right, they seem to make sense! I think I was a bit wrong on my answers from what I can remember, thanks again at least I can now re-work it and understand it!!! Here is my email address j.sharples108@hotmail.com.<BR><BR>You are a star.<BR><BR>Thanks<BR><BR>Jo

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