Kasi Chill and Vibes Ltd is a respected manufacturer of street fashion wear and sells these items for cash. Kasi Chill and Vibes Ltd is listed on the Namibian Stock Exchange and has a 30 June year end.

The following trial balance relates to Kasi Chill and Vibes Ltd for the financial year ended 30 June 20.20:

	NOTE	DR (R)	CR (R)
SHARE CAPITAL
- Ordinary shares	1		1 200 000
- Cumulative preference shares	1		5 000 000
Revaluation surplus at 30/06/20.19			150 000
Retained earnings at 30/06/20.20			6 200 000
Revenue			5 600 000
Finance income earned	2		200 000
Dividends received			250 000
Preference dividend paid		100 000
Interest paid		60 000
Cost of sales		2 500 000
Other operating expenses	3	3 750 000

NOTES .

1. Share capital

At 30 June 20.11 the issued share capital consisted of 1,2 million ordinary shares of R1 each. On 1 July 20.11, the board of directors was given the option to take up 1600 000 ordinary shares at R1,50 each, while the average market price of ordinary shares was R2,50.Cumulative preference shares consisted of 800 000 non-redeemable preference shares. The dividend rate is 12 cents per cumulative preference share. The payment of a preference dividend is solely at the discretion of the directors and any unpaid dividends accumulate for possible future declaration The preference shares are classified as equity in accordance with IAS 32 Financial Instrument: Presentation. Interest accrued at year end is included in accounts payable.

2. Finance Income Earned

Finance income is accounted for by using the effective interest rate method over the period of the instalment sale agreement.

3. Other operating expenses

Other operating expenses include the following:

Donations to charity (Not tax deductible) 4 000

Required:

(a) Provide the following notes to the annual financial statements of Kasi Chill and Vibes Ltd V for the year ended 30 June 20.20: Earnings per share