The capital and reserves section of Crimson plc’s Statement of financial position as at 31 December 2011, after recording the following transactions all of which took place in the current year.

Required: 

The Statement of changes in equity tracing all transactions with shareholders in 2011. This question is quite a challenging one because what is provided is the position at the year-end and we have to trace the steps backwards from there to find the position at the commencement.

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1 Jan: A bonus issue of one for three was made. 1 April: 1 Sept: Revaluation gain of £46,000 was recognised in respect of land and buildings. 200,000 ordinary shares of £1 each were issued at 125p each. Expenses amounting to £1,000 were written off against Share premium. 1 Nov: An interim dividend of £20,000 was paid. 31 Dec: Profit before tax for the year was identified as £39,000 and tax estimated at £11,000. £12,000 of revaluation reserve realised in the year ended 31 December 2011.