Q 12: An entity has two classes of shares in issue: 5,000 non-convertible preference shares 10,000 ordinary shares The preference shares are entitled to a fixed dividend of Rs. 5 per share before any dividends are paid on the ordinary shares. Ordinary dividends are then paid in which the preference shareholders do not participate. Each preference share then participates in any additional ordinary dividend above Rs. 2 at a rate of 50% of any additional dividend payable on an ordinary share. The entity's profit for the year is Rs. 100,000, and dividends of Rs. 2 per share are declared on the ordinary shares. Compute the allocation of earnings for the purpose of calculation of Basic EPS when an entity has ordinary shares & participating equity instruments that are not convertible into ordinary shares