Set out below is the capital section of a company's statement of financial position. You are required

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Set out below is the capital section of a company's statement of financial position.

You are required to explain the five different reserves that are shown on this company's statement of financial position, including in your answer the possible reasons for their existence.

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Related Book For answer-question

Introduction To Financial Accounting

ISBN: 978-0077138448

7th edition

Authors: Anne Marie Ward, Andrew Thomas

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Question Posted: Dec 20, 2016 10:31 AM

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Set out below is the capital section of a company's statement of financial position. You are required

Question:

31 Mar 20x2 £ 000 40,000 31 Mar 20x1 E'000 140,000 30,000 20,000 Equity share capital Preference share capital Share premium Capital redemption reserve Revaluation reserve General reserve Retained earnings 20,000 30,000 9,700 27,000 84,900 311,600 7,200 20,000 70,300 287,500

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Share premium This arises from shares having been issued at a price in excess of their nominal value ...View the full answer

Introduction To Financial Accounting

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