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  • Acc 103 Conceptual Activity On BVPS

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    ACC-103-CONCEPTUAL-ACTIVITY-ON-BVPS

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    3 views6 pages

    Acc 103 Conceptual Activity On BVPS

    Uploaded by

    Adyang

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Problem 1

    BVPS = Total shareholders’ equity excluding subscription receivable / Number of shares


    outstanding

    Ordinary shares, P20 par


    Share premium - Original issuance
    Share premium - share options
    Retained earnings - unappropriated
    Retained earnings - appropriated
    Total shareholder's equity

    Total shares outstanding (20,000,000 / 20 par)

    BVPS = 118,000,000 / 1,000,000 shares

    Problem 2

    8% Preference share, P 50 Par


    Ordinary shares, P20 Par
    Share Premium
    Retained Earnings
    Total Shareholder's Equity

    A. Non-cumulative and non-participating

    Balances
    Less: Dividends
    Balance to ordinary shares

    Divide Outstanding shares


    BVPS

    B. Cumulative and non-participating

    Balances
    Dvidend
    Balance to ordinary shares
    Total Shareholders' equity
    Divide Outstanding shares
    BVPS

    C. Non-cumulative and participating

    Balances
    Preference Dividends
    Ordinary share dividends
    Balance for participation
    Preference shares (39,200,000 x (2/10))
    Ordinary Shares (39,200,000 x (8/10))

    Divide:
    BVPS

    D. Cumulative and participating

    Balances
    Preference Dividends
    Ordinary share dividends
    Balance for participation
    Preference shares (38,8800,000 x (2/10))
    Ordinary Shares (38,880,000 x (8/10))
    Total shareholders' equity
    Divide:
    BVPS

    E. Cumulative and Participating up to 15%


    Balances
    Prederence Dividends (2,000,000 x 8% x 3)
    Ordinary dividends
    Balance for participation
    Preference shares (2,000,000 x 7%)
    Ordinary Shares
    Total shareholders' equity
    Divide:
    BVPS:

    F. Cumulative, Participating, and having a liquidation value of 80

    Balances
    Preference Dividends
    Liq. Premium (( 80 - 50) x 40,000)
    Ordinary share dividends
    Balance for participation
    Preference shares (37,680,000 x (2/10))
    Ordinary Shares (37,680,000 x (8/10))
    Total shareholders' equity
    Divide:
    BVPS
    er of shares

    20,000,000.00
    50,000,000.00
    8,000,000.00
    30,000,000.00
    10,000,000.00
    118,000,000.00

    1,000,000.00 Shares

    118.00

    2,000,000.00
    8,000,000.00
    16,000,000.00
    24,000,000.00
    50,000,000.00

    Preference shares Ordinary Shares Total


    In Excess of Par At Par At Par Equity
    40,000,000.00 2,000,000.00 8,000,000.00 50,000,000.00
    160,000.00 160,000.00
    39,840,000.00 39,840,000.00
    2,160,000.00 47,840,000.00
    40,000.00 400,000.00
    54.00 119.60

    Preference shares Ordinary Shares Total


    In Excess of Par At Par At Par Equity
    40,000,000.00 2,000,000.00 8,000,000.00 50,000,000.00
    480,000.00 480,000.00
    39,520,000.00 39,520,000.00
    2,480,000.00 47,520,000.00
    40,000.00 400,000.00
    62.00 118.80

    Preference shares Ordinary Shares Total


    In Excess of Par At Par At Par Equity
    40,000,000.00 2,000,000.00 8,000,000.00 50,000,000.00
    160,000.00 160,000.00
    640,000.00 640,000.00
    39,200,000.00
    7,840,000.00 7,840,000.00
    31,360,000.00 31,360,000.00
    10,000,000.00 40,000,000.00
    40,000.00 400,000.00
    250.00 100.00

    Ratio
    Ordinary shares 8,000,000.00 8/10
    Preference shares 2,000,000.00 2/10
    10,000,000.00

    Preference shares Ordinary Shares Total


    In Excess of Par At Par At Par Equity
    40,000,000.00 2,000,000.00 8,000,000.00 50,000,000.00
    480,000.00 480,000.00
    640,000.00 640,000.00
    38,880,000.00
    7,776,000.00 7,776,000.00
    31,104,000.00 31,104,000.00
    10,256,000.00 39,744,000.00
    40,000.00 400,000.00
    256.40 99.36

    Ratio
    Ordinary shares 8,000,000.00 8/10
    Preference shares 2,000,000.00 2/10
    10,000,000.00
    Preference shares Ordinary Shares Total
    In Excess of Par At Par At Par Equity
    40,000,000.00 2,000,000.00 8,000,000.00 50,000,000.00
    480,000.00 480,000.00
    640,000.00 640,000.00
    38,880,000.00
    140,000.00 140,000.00
    38,740,000.00 38,740,000.00
    2,620,000.00 47,380,000.00
    40,000.00 400,000.00
    65.50 118.45

    Amount of participation to PS
    (15% - 8% = 7%) x 2,000,0 140,000.00

    Ratio
    Ordinary shares 8,000,000.00 8/10
    Preference shares 2,000,000.00 2/10
    10,000,000.00

    Preference shares Ordinary Shares Total


    In Excess of Par At Par At Par Equity
    40,000,000.00 2,000,000.00 8,000,000.00 50,000,000.00
    480,000.00 480,000.00
    1,200,000.00 1,200,000.00
    640,000.00 640,000.00
    37,680,000.00
    7,536,000.00 7,536,000.00
    30,144,000.00 30,144,000.00
    11,216,000.00 38,784,000.00
    40,000.00 400,000.00
    280.40 96.96

    Ratio
    Ordinary shares 8,000,000.00 8/10
    Preference shares 2,000,000.00 2/10
    10,000,000.00

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