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Question No. 05 A On 1 April 2018, WBL PLC purchased 500,000 shares in a key supplier-entity X. The shares were purchased in order to
Question No. 05 A On 1 April 2018, WBL PLC purchased 500,000 shares in a key supplier-entity X. The shares were purchased in order to protect WBL's source of supply and WBL has no intention of trading in these shares. The shares cost Rs 2 per share and the direct costs of purchasing the shares were Rs 100,000. On 1 January 2019, the supplier paid a dividend of 30 cents per share. On 31 March 2019, the fair value of a share in entity X was Rs 2.25. Required: i. Prepare the relevant ledger account ii. Provide the extracts of financial statements for year 2018/19 (06 Marks)
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