DFS December 2004 - Am I being thick?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
I am doing the past paper for DFS 2004 but when i come to check my answers on the AAT answer booklet it looks a bit wrong? <BR>It says alasmith has 60% holding in jones 4,000,000 / 6,000,000 = 60%<BR>I have worked it out as 3,600,000 / 6,000,000 = 90%<BR><BR>I am confused as it does say that alasmith acquired 3,600,000 shares in Jones...... Id on't get it. Could someone please explain as i am feeling quite confused????<BR><BR>Many Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS December 2004 - Am I being thick?

    <BR>Hi<BR><BR>Not sue what the answer says, but:<BR><BR>Alasmith definitely owns 60% (3600/6000). I'm confused how you make 90%??? <BR><BR>Maybe the answer is wrong because 4000/6000 = 66.6%. Do you see what I mean?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS December 2004 - Am I being thick?

    Oh bugger, sorry i am being thick. I picked up the share premium amount of 4,000 in my workings hence getting 90%............<BR><BR>Still don't get the AAT answer of 4,000/6,000 though as thats the share premium in the subsid company / called up share capital in the subsidiary????? is that another way of working it out??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS December 2004 - Am I being thick?

    Hi Claire<BR>Are you refering to the workings on pg 2 task 1.1 (i)?<BR>On my sheet it says <BR>Alasmith plc holdings in Jones LTD<BR>3600000/6000000 = 60%<BR>This is correct.<BR>Are you mixing up section(iii) where it calculates the goodwill?<BR>Share capital 6000, then underneath Share premium 4000 etc?<BR><BR>Let me know if what i have said makes any sense<BR><BR>Paul<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS December 2004 - Am I being thick?

    Do you know - you're right. I've done this paper I don't know how many times and I've never noticed that before. The holding is 60% (3,600,000/6,000,000 x 100) and have only ever looked at the percentage figure. Don't worry, this is obviously a typo and you're not going mad! :-)<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    DFS December 2004 - Am I being thick?

    Glad i am not going mad, i was getting worried then thinking i had to learn another method!!!!!! phew!

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