Williamson Limited issued 15 000 Cl 10% redeemable preference shares on 1 March 20X1. The shares are subject to compulsory redemption by the company on 28 February 20X4. On 28 February 20X4 the directors resolved to redeem the preference shares at a premium of C0.05 per share. This was in accordance with the terms of the original issue. In order to obtain funds for the redemption, the company issued 20 000 unsecured, Cl 12% debentures on 1February 20X4 at a discount of 3%, to be redeemed on 31 January 20X9 at a premium of 2%. These debentures were issued at an effective interest rate of 13.1640%. The directors wish to utilise the share premium account to the maximum extent possible. The balance on the retained earnings account was CI20 000 at 28 February 20X4, before any entries had been processed relating to the effect of the above transactions on the debentures, preference shares and dividends.

Required:

Prepare an extract from the statement of financial position and notes to the financial statements of Williamson Limited for the year ended 28 February' 20X4, in terms of the requirements of the Companies Ordinance, 1984 and International Financial Reporting Standards.

Calculations must be made to the nearest whole number.

Answer rating: 100% (QA)

Extract from Statement of Financial Position as at 28 February 20X4 Shareholders funds Preference sh... View the full answer