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[sharechat] Book Value

From:	prhughes@value.net.nz
Date:	Thu, 19 Jun 2003 21:14:07 +1200

Hi

It is a long time since I did any accounting, but it appears that you 
are confusing Fixed Assets and Shares.

Fixed Assets (Initial Purchase)

List price of machine                              2000.00
  GST  12.5%                                          250.00
                                                   =        2250.00

Freight                                                     200.00
Installation Labour                                     100.00

                                 Total                      2550.00

Matching Costs with Revenue
Allocate equitably against the revenues of the n years by the 
process of depreciation.

Book Value Ordinary Shares

Equity of Ordinary Shareholders                        2,000,000
Number of issued Ord Shares                               80,000
Book Value per share                                               $25

This is in a simple form, hope it helps.          

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References

[sharechat] Bronwyn Shanks

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