How often Statement of changes in equity is asked

Where it was asked

What costs marks here

The questions

1. May/Jun 2012, Q417 marks

   The accounting records of Malemone Limited, at 31 March 2012, reflect the following balances: ordinary share capital of R1 200 000; 10% cumulative preference share capital of R850 000; retained earnings as at 1 April 2011 of R351 000; an office building carried at cost of R350 000 with accumulated depreciation of R70 000 as at 31 March 2012; an investment in Maraisane Limited of R300 000; a mark-to-market reserve of R100 000; and a Capital Redemption Reserve Fund of R450 000. Additional information is as follows. (1) Malemone Limited was incorporated on 1 April 2009 with authorised share capital comprising 500 000 ordinary no par value shares and 300 000 10% cumulative no par value preference shares. (2) At incorporation, 300 000 ordinary shares were issued at R4 each; on 1 July 2009, 100 000 cumulative preference shares were issued at R7,48 each; and on 1 August 2011 a further 12 000 10% cumulative preference shares were issued at R8,50 each. (3) The following equity transactions for the current financial year still need to be recorded: (3.1) on 5 April 2011, 100 000 ordinary shares were issued at R5 each, with share issue expenses of R1 000 which must be written off against retained earnings; (3.2) on 1 May 2011, a capitalisation issue was made of one new ordinary share for every five ordinary shares held, at R7,50 per share, structured to have the minimum possible effect on distributable reserves; (3.3) total comprehensive income for the year, calculated after correctly accounting for depreciation but before any revaluation of the office building, amounted to R536 700. (4) The office building was originally acquired on 1 April 2009 for R350 000 and has been depreciated at 10% per annum on the straight-line method. The company has decided to revalue the office building at the start of the year on a gross replacement basis; the cost of a similar building on 2 April 2011 was determined to be R375 000, and this revaluation has not yet been recorded. (5) On 1 October 2010, Malemone Limited purchased 50 000 ordinary shares in Maraisane Limited at a cost of R4 per share, designating the investment as a financial asset not-held-for-trading; Maraisane Limited's issued ordinary share capital totals 500 000 shares. The market value of Maraisane Limited shares on the Johannesburg Securities Exchange was R6 per share on 31 March 2011 and R7 per share on 31 March 2012, and the current year's revaluation of this investment has not yet been recorded. (6) On 20 March 2012, a final dividend of 12c per share was declared on the ordinary shares; no dividends were declared or paid in the previous financial year because no profit had been earned. You are required to prepare the Statement of Changes in Equity of Malemone Limited for the year ended 31 March 2012, complying with the requirements of the Companies Act and Generally Accepted Accounting Practice. Comparative figures may be ignored, but all calculations must be shown.

2. Oct/Nov 2010, Q228 marks

   The books of Be Aware Limited, as at 30 June 2010, reflect the following balances, with note references shown: stated capital (notes 2, 3, 5.2 and 7) - amount unknown; 12% cumulative preference shares (notes 1, 4 and 5.1) R100 000; 10% redeemable preference shares (note 4) R20 000; reserve for replacement of non-current assets (note 5.4) R45 000; capital redemption reserve fund (note 5.2) - nil; proceeds from 20 000 ordinary shares issued on 31 December 2009, R28 000; retained earnings at 1 July 2009, R40 000; 10% long-term loan R40 000; investments (note 6) R70 000; and profit for the year (note 6) R200 000. Additional information is as follows. (1) At incorporation, Be Aware Limited's authorised share capital comprised 400 000 ordinary shares of R1,20 each, 125 000 12% cumulative preference shares of R4 each, and 50 000 10% redeemable preference shares of R1 each. (2) At incorporation the company issued 100 000 ordinary shares for R140 000. (3) On 30 June 2008 the directors resolved to issue a further 80 000 shares at R1,40 each. (4) No preference shares were issued during the previous financial year. (5) During the current financial year the following transactions took place, all approved by the directors: (5.1) on 1 January 2010, 6 250 12% cumulative preference shares were issued at R4,04 each; (5.2) on 30 May 2010 capitalisation shares were issued to all ordinary shareholders in the ratio of one ordinary share at par for every four ordinary shares already held, funded solely from the capital redemption reserve fund; (5.3) on 1 June 2010 share issue expenses of R8 000 were written off in a manner designed to have the smallest possible effect on distributable reserves; (5.4) the reserve for replacement of non-current assets was increased by R35 000. (6) Investments comprise: (6.1) Only Limited, a company listed on the Johannesburg Securities Exchange, in which 10 000 ordinary shares were bought for speculative purposes at R5 each, with a market value of R8 per share at 30 June 2010; and (6.2) Lonely (Pty) Limited, an unlisted company whose shares are classified as available-for-sale, in which 20 000 ordinary shares were bought at R1 each, with the directors valuing the total holding at R40 000 on 30 June 2010. No entries for either of these investment transactions have yet been recorded in Be Aware Limited's books. (7) On 1 June 2010 the directors resolved to convert the ordinary shares into no-par-value shares. (8) On 30 June 2010 the directors declared an ordinary dividend of 10c per share, this being the first dividend declared or paid, as none had been declared or paid in the prior financial year. You are required to prepare the Statement of changes in equity of Be Aware Limited for the financial year ended 30 June 2010, complying with the Companies Act and Generally Accepted Accounting Practice. Show all calculations, but comparative figures may be omitted and the total column is not required.