a) Distinguish between sale of shares at a discount and sale of shares at a premium....

 

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a) Distinguish between sale of shares at a discount and sale of shares at a premium. (2 Marks) b) Explain three features that distinguish capital expenditure from revenue expenditure. (3 Marks) c) On 1/1/20, the business bought a lorry at shs 248,000 cash. Due to wear and tear, this lorry was depreciated at a rate of 25% per annum on net book value. On 31/12/22, this lorry was sold at shs. 114,000 cash. Depreciation is calculated on prorata basis during the year of disposal. The accounting year of the entity begins on 1 Jan and ends on 31" Dec each year. Required: Prepare the disposal a/c for this lorry. (5 Marks) a) Distinguish between sale of shares at a discount and sale of shares at a premium. (2 Marks) b) Explain three features that distinguish capital expenditure from revenue expenditure. (3 Marks) c) On 1/1/20, the business bought a lorry at shs 248,000 cash. Due to wear and tear, this lorry was depreciated at a rate of 25% per annum on net book value. On 31/12/22, this lorry was sold at shs. 114,000 cash. Depreciation is calculated on prorata basis during the year of disposal. The accounting year of the entity begins on 1 Jan and ends on 31" Dec each year. Required: Prepare the disposal a/c for this lorry. (5 Marks)

Answer rating: 100% (QA)

1 Sales of Shares and Sales of Shares at Premium refer to different ways in which a company can issue its shares to investors These terms are often used in the context of corporate finance and securit... View the full answer