Here is an extract from Mapule Ltd’s statement of financial position as at 31 December 20x2:

Additional information:

• The preference shares are redeemable at a premium of 2% on 3 January 20x3.

• The directors wish to issue the minimum number of ordinary shares at R1.02 each.

Ignore dividends and taxation.

You are required to:

1. Calculate the number of ordinary shares to be issued.

2. Show the balances on distributable reserves (if any).

Transcribed Image Text:

EQUITY AND LIABILITIES Capital and reserves Issued and fully paid up 10 000 redeemable preference shares (fixed annual dividend of 6c/share) Ordinary share capital Distributable reserve Asset replacement reserve Retained earnings NIT 2 4 2 XXX XXX XX XXX XXX XX 20 000 00 XX XXX XX 10 100 00 8 000 00 2 100 00