Class Activity$-$Lesson $1.$

You are required to answer the following questions. You will upload your work preferably as a

PowerPoint with slides not exceeding $10.$ The cover page must indicate the names and student

numbers of the group members. The completed assignment should be uploaded to the course area

in the "Class activity $1"$ folder. For question $5\mathrm{.}2$ attached in this assignment, you are advised to use

excel to draw the respective ledgers. Your work must be uploaded in editable format ONLY.

Deadline: Upload your work on or before Wednesday, $6^{th}$ December $2023$ on or before $16$:$00$hrs

Question $1$

With examples explain the role and purpose of the following with regard to financial reporting:

a$)$ IAS$-$Internationally accepted accounting standards

b$)$ IFRS$-$ International Financial Reporting Standards

c$)$ GAAP$-$Generally Accepted Accounting principles

d$)$ What is the role of stock markets such as the Amsterdam stock exchange?

e$)$ Explain the nature and differences between raising capital through the sale of shares$($share

capital$)$ and loan capital $($Debenture shares$)?$

f$)$ The IASB$-$International Accounting Standards Board

g$)$ The conceptual Framework and accounting policies

h$)$ Explain the different types of shares, their advantages and disadvantages to the issuing

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$5\mathrm{.}2$ Easy Heart Ltd has an authorised capital of $f800,000$ comprising ordinary shares of $f1$ each. The

shares were issued at par, payments being made as follows:

Applications were received for $1\mathrm{.}08$ million shares. It was decided to refund application monies on

$80,000$ shares and to allot the shares on the basis of four for every five applied for. The $40,000$ excess

application monies sent by the applicants whose applications were successful are not to be refunded

but are to be held and so reduce the amount payable on allotment.

The calls were made and paid in full with the exception of two members holding a combined total

of $5,000$ shares who paid neither the first nor the second call and another member who did not pay

the second call on $2,000$ shares. The shares were forfeited and reissued to $H$ Vipond at a price of $80p$

per share.

You are to draft the ledger accounts to record the transactions.