(Solution) - A The following items usually appear in the final financial -(2025 Original AI-Free Solution)

Paper Details

a. The following items usually appear in the final financial statements of a limited company:
i. Interim dividend;
ii. Authorized capital;
iii. General reserve;
iv. Share premium account.
Required:
An explanation of the meaning of each of the above terms.
b. The following information has been obtained from the books of Drayfuss Ltd:
Authorized capitol .....................100,0008%£1 preference shores 400,00050p equity shores
Retained earnings - I Apr 20X0...............................................................£355,000
General reserve...................................................................................£1 05,000
Issued capital 80,000 8% preference shores (fully paid) 250,000 50p equity shores (fully paid)
Profit for the year to 31 Mar 20X1..............................................................£95,000
The preference share interim dividend of 4 per cent had been paid and the final dividend of 4 per cent had been proposed by the directors. No equity share interim dividend had been declared, but the directors proposed a final dividend of 15p per share. The directors agreed to transfer £150,000 to general reserve.
Required
Prepare the statement of changes in equity for the year ended 31 March 20X1. Ignore taxation.