Question
Part C : Statement of Changes in Equity (5 Marks) The equity section of the statement of financial position of Comet Ltd at 30 June
The equity section of the statement of financial position of Comet Ltd at 30 June 2016 discloses
2016
2015
Share capital
$3 700 000
$3 600 000
General reserve
500 000
100 000
Revaluation surplus
800 000
240 000
Retained earnings
500 000
680 000
$5 500 000
$4 620 000
Additional information
(a)Comet Ltd issued 100 000 shares at $1 each during the year.
(b)Profit for the year was $300 000.
(c)Dividends paid during the year were $80 000.
(d)A transfer of $400 000 was made from retained earnings to general reserve during the year.
(e)Land was revalued by $800 000 during the year.
(f)Tax rate is 30%.
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