Suggested solution

Subject: FAR-I (CAF – 01) (Test 10)

Date: December 26, 2023
Teacher: Umair Sheraz Utra

Solution 1
Lucky Company Limited 0.5
Statement of Changes in Equity
For the year ended December 31, 2012
Rs. in ‘000’
Share Share Retained Marks
capital premium earnings Total
Balances at January 01, 2011 10,340 6,945 17,285 1.25
Final cash dividend for 2011 (10,340 x 15%) (1,551) (1,551) 1.0
Final Bonus for 2011 (10,340 x 10%) 1,034 (1,034) - 1.0
Interim bonus for 2012 (10,340+1,034) x 5% 569 (569) - 1.0
Right issue 2012 (W-1) 9,554 7,644 17,198 1.75
Profit for 2012 5,090 5,090 0.5
Balances at December 31, 2012 21,497 7,644 8,881 38,022

(W-1) Entry for right issue

Particulars Dr. Cr.
Cash (955.44 million shares x Rs. 18) 17,198
Share capital (955.44 million shares x Rs.10) 9,554
Share premium (955.44 million shares x Rs.8) 7,644
No. of share before right issue (10,340+1,034+569) =Rs. 11,943 million/Rs. 10 1,194.3 million shares
No. of right share (1,194.3 x 80%) 955.44 million shares

Solution 2:
i) B (Rs. 10,200 Dr) (02)
ii) D (Complete Reversal of entries) (01)

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