To prepare the Statement of Changes in Equity for Blue Dot $($Pty$)$ Ltd for the year ended $31$ December $2023,$ we need to consider all the transactions provided and their impact on the equity components: ordinary shares, retained earnings, and revaluation surplus.

Here's the step$-$by$-$step calculation for each component:

Ordinary Shares:

Balance at $31$ December $2022$: $100,000$ shares

Shares issued on $1$ August $2023$: $5,000$ shares

Total shares issued: $100,000+5,000=105,000$ shares

Retained Earnings:

Opening balance $($adjusted for error$)$: $-$R$120,000($since it decreased$)$

Profit for the year: R$27,000($Profit before tax$)-$ R$8,000($Tax expense$)=$ R$19,000$

Dividends paid: $100,000$ shares $*0\mathrm{.}50$ per share $=$ R$50,000$

Dividends declared $($final$)$: $105,000$ shares $*0\mathrm{.}25$ per share $=$ R$26,250$

Adjustment for revaluation surplus transfer: R$50,000$

Revaluation Surplus:

Balance at $31$ December $2022$: R$100,000$

Transfer to retained earnings: $-$R$50,000$

Now, let's calculate the closing balance for each component:

Retained Earnings:

Opening balance: $-$R$120,000$

Adjusted for error: $-$R$120,000$

Profit for the year: R$19,000$

Dividends paid: $-$R$50,000$

Dividends declared: $-$R$26,250$

Adjustment for revaluation surplus transfer: R$50,000$

Closing balance for Retained Earnings:

$-120,000-120,000+19,000-50,000-26,250+50,000=-$R$127,250$

Revaluation Surplus:

Opening balance: R$100,000$

Adjustment for transfer to retained earnings: $-$R$50,000$

Closing balance for Revaluation Surplus:

R$100,000-50,000=$ R$50,000$

Ordinary Shares:

Total shares issued: $105,000$ shares

Now, we can present the Statement of Changes in Equity:

Blue Dot $($Pty$)$ Ltd

Statement of Changes in Equity

For the year ended $31$ December $2023$

Retained Earnings Revaluation Surplus

R R

Balance at $1$ January $2023($adjusted for error$)-120,000100,000$

Profit for the year $19,000-$

Dividends paid $-50,000-$

Dividends declared $-26,250-$

Transfer from revaluation surplus $50,000-$

Balance at $31$ December $2023-127,25050,000$

Note: The total number of shares issued is not a component of the Statement of Changes in Equity but is provided for information purposes. The total number of shares issued is $105,000.$

Please note that the calculations provided are based on the information given and the assumptions made. It's important to double$-$check the calculations and ensure that they align with the specific requirements and accounting standards $($International Financial Reporting Standards$).$

Enrich

he following is an extract from the statement of changes in equity of Blue Dot $($Pty$)$

Ltd for the year ending $31$ December $2022$:

Ordinary

shares

R

Retained

earnings

R

Revaluation

surplus: PPE

R

Balance at $31$ December $202220000**32000100000$

$**$ Represented by $100000$ issued shares.

The following transactions occurred during Blue Dot $($Pty$)$ Ltd$$s $2023$ financial year:

$$ The company realised a profit before tax of R$27000$ and a total comprehensive

income of R$29000.$ You can assume that the total amount relating to other

comprehensive income is attributable to the revaluation of assets.

$$ The company had a tax expense of R$8000.$

$$ An interim dividend of $50$ cents per share was declared and paid on $30$ June $2023.$

$$ On $1$ August $2023,$ the company issued a further $5000$ shares at R$1$ each.

$$ A final dividend of $25$ cents per share was declared by the directors on $31$

December $2023.$

$$ Due to the sale of one of the company$$s revalued assets, R$50000$ of the

revaluation surplus was transferred to retained earnings.

$$ An error affecting the $2022$ financial year was picked up and the effect of the error

is that the opening retained earnings for $2023$ had to decrease with R$120000.$

$$ You can assume that these are the only transactions that occurred which had an

effect on the elements included in the statement of changes in equity and you can

further assume that the elements listed above are the only elements that make up

the equity of Blue Dot $($Pty$)$ Ltd

REQUIRED:

$2\mathrm{.}1)$ Prepare the Statement of Change in Equity of Blue Dot $($Pty$)$ Ltd for the year

ended $31$ December $2023$ in compliance with the requirements of International

Financial Reporting Standards.

All amounts should be rounded to the nearest Rand. Show all calculations

clearly.

Comparative figures and a Total column to your statement are not required.