Explain the concept of equity share capital and its types


Assignment:

Q1. Khaled Co is in Export business operating from Jeddah for the last 10 years successfully. From the following summary of Cash Account of Khaled, prepare Cash Flow Statement for the year ended 31st March 2017 in accordance with using the direct method. The company does not have any cash equivalents.

Summary (Cash Account) 31-3-2017

Particulars

Amount

Particulars

Amount

Bal 1.4.2016

50

Payments to Suppliers

2000

Equity Shares

300

Purchase of Fixed Asset

200

Receipt from Customers

2800

Overhead Expenses

200

Sale of Fixed Assets

100

Wages & Salaries

100

 

 

Taxation

250

 

 

Dividends

50

 

 

Repayment of long term  Loans

300

 

 

Balance c/d

150

3250

 

3250

Q2. Explain the concept of Equity Share Capital and its Types?

Q3. A manufacturing corporation   listed in capital market was trying to create demand on its share to keep share prices at desired level and to prevent share prices from going down, the corporate decided to purchase treasury stock from open market.( 3 marks)

 So, you are required to explain what is meant by treasury stock and journalize the following transactions:

Q3. define Treasury stock and journalize the following transactions:

1- On May 8, Whitt, Inc. purchased 2,000 of its own shares of stock in the open market for $8,000

2- On June 30, Whitt sold 100 shares of its treasury stock for $4 per share.

3- On July 19, Whitt, Inc. sold an additional 500 shares of its treasury stock for $8 per share.

4- On August 27, Whitt sold an additional 400 shares of its treasury stock for $1.50 per share.

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Accounting Basics: Explain the concept of equity share capital and its types
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