A Ltd is a trading company that was badly impacted by the lock-down in 2020 due...

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A Ltd is a trading company that was badly impacted by the lock-down in 2020 due to the Covid 19 outbreak. The following extract from A Ltd's financial statements at 31 March 2021 and related information is presented to you to assist you in calculating and presenting the earnings per share of the company: Balance at 1 April 2019 Changes in equity for 2020 Dividends paid Profit for the year Total comprehensive income Balance at 1 April 2020 Changes in equity for 2021 Dividends paid Extract from the Statement of Changes in Equity for the year ended 31 March 2021 R Retained earnings Profit for the year Total comprehensive income Balance at 1 April 2021 ADDITIONAL INFORMATION: The issued share capital of A Ltd consisted of the following on 1 April 2019: 100 000 Ordinary shares 10 000 6% Non-redeemable cumulative preference shares 50 000 5% Redeemable cumulative preference shares 1. 2. 3. 519 636 220 364 Ordinary dividend (15/6/2020) 6% preference dividend (31/3/2021) 5% preference dividend (31/3/2021) 740 000 (164 000) 270 000 846 000 R8 000 000 R1 000 000 R500 000 The 5% redeemable cumulative preference shares are redeemable at 31 March 2023 at the option of the holders. The dividends that were paid in the reporting period ended 31 March 2021 consisted of the following: R44 000 R120 000 R25 000 The following share transactions took place in the two reporting periods under review: On 1 October 2019 the company issued 10 000 ordinary shares at R85 each. On 31 July 2020 the company made a capitalisation issue of one share for every eleven shares to all ordinary shareholders registered on 30 June 2020. REQUIRED: Present and disclose the earnings and dividends per share for 2021 and 2020 in terms of IAS 33 Earnings per share. (25) Show calculations clearly as it counts marks. A Ltd is a trading company that was badly impacted by the lock-down in 2020 due to the Covid 19 outbreak. The following extract from A Ltd's financial statements at 31 March 2021 and related information is presented to you to assist you in calculating and presenting the earnings per share of the company: Balance at 1 April 2019 Changes in equity for 2020 Dividends paid Profit for the year Total comprehensive income Balance at 1 April 2020 Changes in equity for 2021 Dividends paid Extract from the Statement of Changes in Equity for the year ended 31 March 2021 R Retained earnings Profit for the year Total comprehensive income Balance at 1 April 2021 ADDITIONAL INFORMATION: The issued share capital of A Ltd consisted of the following on 1 April 2019: 100 000 Ordinary shares 10 000 6% Non-redeemable cumulative preference shares 50 000 5% Redeemable cumulative preference shares 1. 2. 3. 519 636 220 364 Ordinary dividend (15/6/2020) 6% preference dividend (31/3/2021) 5% preference dividend (31/3/2021) 740 000 (164 000) 270 000 846 000 R8 000 000 R1 000 000 R500 000 The 5% redeemable cumulative preference shares are redeemable at 31 March 2023 at the option of the holders. The dividends that were paid in the reporting period ended 31 March 2021 consisted of the following: R44 000 R120 000 R25 000 The following share transactions took place in the two reporting periods under review: On 1 October 2019 the company issued 10 000 ordinary shares at R85 each. On 31 July 2020 the company made a capitalisation issue of one share for every eleven shares to all ordinary shareholders registered on 30 June 2020. REQUIRED: Present and disclose the earnings and dividends per share for 2021 and 2020 in terms of IAS 33 Earnings per share. (25) Show calculations clearly as it counts marks.

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ANSWER To calculate earnings per share we need to first determine the weighted average number of sha... View the full answer