Prepare a Statement of Changes In Equity for end of the year. Ahmed's capital structure is at

Prepare a Statement of Changes In Equity for end of the year.
  

Transcribed Image Text:

Ahmed's capital structure is at the beginning of the year is:- $000 200 75 80 160 70 585 $1 Ordinary Shares 5% Preference Shares of $1 Share Premium account Retained Earnings Revaluation Reserve The following took place within the year (in the order given): A one for one bonus issue A right issue of 100 000 ordinary shares of $1.00 each at $1.40 pershare Interim dividend paid of $5 000( Divided equally between preference and ordinary shareholders) Profit for the year was $35 000 $80 000 transferred to the General Reserve 60% of Preference was redeemed at par using funds in the share premium account to finance the redemption. 75% of the balance in Retained Earnings was transferred to Capital Redemption Account An asset which had cost $20 000 and with Net Book Value of $12 000, was revalued to $27 500. The directors recommended a $0.05 final dividend to be paid to the ordinary shareholders and a completion of the balance dividend owed to the Preference Shareholders. Ahmed's capital structure is at the beginning of the year is:- $000 200 75 80 160 70 585 $1 Ordinary Shares 5% Preference Shares of $1 Share Premium account Retained Earnings Revaluation Reserve The following took place within the year (in the order given): A one for one bonus issue A right issue of 100 000 ordinary shares of $1.00 each at $1.40 pershare Interim dividend paid of $5 000( Divided equally between preference and ordinary shareholders) Profit for the year was $35 000 $80 000 transferred to the General Reserve 60% of Preference was redeemed at par using funds in the share premium account to finance the redemption. 75% of the balance in Retained Earnings was transferred to Capital Redemption Account An asset which had cost $20 000 and with Net Book Value of $12 000, was revalued to $27 500. The directors recommended a $0.05 final dividend to be paid to the ordinary shareholders and a completion of the balance dividend owed to the Preference Shareholders.

Answer rating: 100% (QA)

Step 1 Statement of Changes in Equity it is important for the firm to m... View the full answer