THUTHUKANI Ltd acquired 20 000 shares in NY Ltd on 1 February 2018 for 210 cents each. Transactions costs amounted to R300. This investment is an equity instrument with gains and losses recognised in other comprehensive income (OCI), in compliance with IFRS 9. NY Ltd declared a dividend of 20 cents per share on 15 May 2018, and THUTHUKANI Ltd accepted the option of receiving a share dividend instead of a cash dividend. NY Ltd issued 2000 new shares to THUTHUKANI Ltd on 29 May 2018.The shares of NY Ltd traded at 250 cents on 30 June 2018.

REQUIRED:

Prepare the necessary general ledger T-accounts to record these transactions for the year ended 30 June 2018. Dates can be ignored. Calculate the amounts (relating to this investment only) to be recognised in the financial statements of THUTHUKANI Ltd for the year ended 30 June 2018.Hint: Ledger Accounts required are: Investment in NY Ltd(10) Revaluation Account(3) Dividends Accounts(3) Statement of financial Position extract(4) Statement of comprehensive income extract(5) Workings(5)

Answer rating: 100% (QA)

General Ledger TAccounts for THUTHUKANI Ltd 1 Investment in NY Ltd 10 Debit Feb 1R42000 20000 shares ... View the full answer