Seminar 10, Practice part.

No 1 2 3 4 5 6 7 8 9

Explanation Subscription of share capital Payment of subscribed capital Transformation of not paid capital in paid Payment of set-up costs Issuance, subscription of new shares Payment of subscribed capital Transformation of NP Capital in Paid Capital Purchase of goods for resale, + VAT (24%) Decrease in in share capital Payment in cash to withdrawing partner Repurchase of own shares Cancellation of repurchased shares

Dr 456 5121 5121 2133 1011 201 456 5311 1011 371 4426 1012 456 109 1012 149

Cr 1011 456 456 456 1012 5121 1011 456 1012 401 456 5311 5311 109

Dr 20. 000 5. 000 5. 000 5. 000 20. 000 100 5. 000 5. 000 5. 000 2. 300 552 1. 000 1. 000 1.100 1. 000 100

Cr 20. 000 5. 000 5. 000 10. 000 20. 000 100 5. 000 5. 000 5. 000 2. 852 1. 000 1. 000 1.100 1. 000

1. 20 Students start up Student Company; Subscribed and not paid capital = 20 000 lei, -> 20 shares. 20 000/20 = 1 000 lei (Nominal value of a share) 456 = 1011 2. a) 5 students deposit 5 000 lei in a bank account 5121 = 456 b) 5 students deposit (after a month) another 5 000 lei at bank 5121 = 456 c) 10 students bring 10 000 lei in the form of a motor vehicle. 2133 = 456 3. As results from 2. , Subscribed Capital Not Paid becomes Subscribed Capital Paid. 1011 = 1012 4. Set-up costs of 100 lei are paid in cash. 201 = 5121 5. Issuance of new shares, total nominal value = 5 000 lei. ( => 5 shares) idem p. 1, 2, 3 6. S. C. buys goods for resale, an amount of 2 300 lei. VAT = 24% (552 lei) 371, 4426 = 401 7. Withdrawal of a partner: a) Decrease in share capital 1012 = 456 b) Payment of 1 000 lei in cash. 456 = 5311 8. Share repurchase (stock buyback) at the issue value of 1 100 lei 109 = 5311 9. Cancelling the repurchased shares. ( Loss = 100 lei) 1012, 149 = 109 (When repurchasing some own shares at a different value than the Nominal Value (NV), the company encounters differences in value. That difference is recorded either as a revenue (141), or a capital loss (149) ).

Finance and Banking, Year II Tulbure Irina