Friday, February 24, 2012

Accounting Examples

Bank
  1. Share Capital = £1000
  2. Earnings = £1000
  3. Manager owns 10 shares @ £1 per share
  4. Bank buys back 990 shares for £990 -> £2000 - £990 = 1010
  5. New Share Capital Figure = £10
  6. Earnings = £1000
  7. Change in Earnings: -£990
  8. Capital Redemption Reserve +£990
Posted by E.B. Holmes at 10:53 AM

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