BGL does not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.
|Details||Amount per share|
|Capital Component||$ 0.8940|
|Excess of the Tax Value over the Buy-back Price.||$ 0.047|
(capital component + excess of the Tax Value over the buy-back price)
|Buy Back Price||$ 0.8940|
The following components will need to be calculated for the fund's holding of PAF shares:
- Capital proceeds received (Sale Consideration)
- Excess of the Tax Value over the buy-back price
- The capital component of sale consideration
After this, a journal will need to be posted to process the share buy-back.
A fund with 1,000 PAF Shares participated in the buy-back.
The components of the transaction are calculated as:
- Capital proceeds: $0.9410*1,000 =$941.00
- Excess of the Tax Value: $ 0.047*1,000 = $47.00
- Dividend: $0
- Bank Receipt of buyback price: $0.894*1,000=$894.00
The following journal will need to be posted in Simple Fund 360:
|Account Name||Account Code||Units||Debit||Credit|