Borne Co.

Equity Section at 1 January 2025

Details Amount
Share Capita - Ordinary £ 1,500,000
Share Premium -Ordinary £ 1,000,000
Retained Earnings £ 1,200,000
Total Equity £ 3,700,000

Mar.    1    Purchased 50,000 shares for cash at £12 per share.

July    1     Sold 10,000 treasury shares for cash at £14 per share.
Sept.    1    Sold 8,000 treasury shares for cash at £11 per share.

a
Journal entry for the treasury shares transactions
Date Details Debit (Dr) Credit (Cr)
1-Mar-25 Treasury shares £ 600,000
Cash £ 600,000

1-Jul-25 Cash £ 140,000

Share Premium - Treasury £ 20,000
Treasury shares £ 120,000

1-Sep-25 Cash £ 88,000

Share Premium - Treasury £ 8,000
Treasury shares £ 96,000

b Journal entry for the treasury shares transactions

Date Details Debit (Dr) Credit (Cr)
1-Sep-25 Cash £ 64,000
Share premium - treasury £ 20,000
Retained earnings 12000
Treasury shares £ 96,000
 1-Mar-25
share qty 50000
price per share £ 12
total share value £ 600,000

1-Jul-25
initial price £ 12
price at 1 jul £ 14
variance £ 2

share qty 10000

gain on selling treasury shares £ 20,000

1-Sep-25
initial price £ 12
price at 1 sep £ 11
variance -£ 1

share qty 8000

-£ 8,000

New 01 - Sep - 25
initial price £ 12 loss incure 32000
price at 1 sep £ 8 share prem 20000
variance -£ 4 diff -12000

share qty 8000

0 -£ 32,000
 Dirk SA. Equity Section at 31 December 2024
Details Amount
Share Capita - Ordinary £ 500,000
Share Premium -Ordinary £ 100,000
Retained Earnings £ 250,000
Total Equity £ 850,000

Equity Section

Details
Share cap - ord. 500000
Share cap - preference 125000 625000
share prem - ord 100000
share prem - prefrence 75000 175000
800000
retained earnings 374000
1174000
less treasury shares 40000
total equity 1134000
 equity section
date details amount
1-Jan-25 share capital - ordinary 1000000
1-Jan-25 retained earnings 750000

Journalize the declaration of a 15% share dividend on December 10, 2025,

Date Details Dr Cr
10-Dec-25 share dividend £ 108,000

Ordinary share dividends

distributable £ 60,000
share premium - Ordinary £ 48,000

Date Details Dr Cr
10-Dec-25 Share dividend £ 120,000
Ordinary share dividends
distributable £ 30,000
share premium - Ordinary £ 90,000

dr cr
Ordinary share dividends
30-Dec distributable 30000
share cap - ordinary 30000
 par value 10

market value 18
share prem 8
share qty 40000
percentage 15%
share prem qty 6000

par value 5
market value 20

share prem 15
share qty 40000
percentage 15%
share prem qty 6000

normal balance
dr cr
dividend
Component BEFORE ACTION AFTER SHARE DIV
Equity Outstanding shares Par value per share Total Outstandin
Share Capital - Ordinary 50000 10 500,000 CHF 52500
Retained Earnings 900,000 CHF
Share premium -Ordinary
 date details dr cr
Share dividend 35000
Ordinary share
dividend
distributable 25000
Share premium -
Ordinary 10000

var 4
market 14
par 10

AFTER SHARE DIVIDEND AFTER SHARE SPLIT

Par value per share Total Outstanding shares Par value per share Total
10.00 CHF 525,000 CHF 210000 2.50 CHF 525,000.00 CHF no change
900,000 CHF 900,000 CHF no change
- CHF - CHF no change
 2500

no change
no change
no change