General ledger of Mbali Limited



* The rights expired on 1 July 2012, which is before the reporting date.

Calculations

1. CU
Fair value of shares (4,500 x CU3,90) 17,550
Carrying amount of shares (4,500 x CU3,88) (17,460)
Fair value adjustment 90
2. Number of shares and R/s

Amount

CU

Before rights issue 4,500 x CU3,90 17,550
Rights issue (4,500 / 5 = 900 rights x 1 share per right = 900 shares) 900 x CU3,30 2,970
5,400 x CU3,80 20,520
CU
Ex-rights value per share (CU20,520/5,400 shares) 3,80
Rights issue price 3,30
Value per new share 0,50

OR:

CU
Cum rights value per share 3,90
Ex rights value per share 3,80
Value change per existing share 0,10

OR:

CU
5 existing shares = 1 right = 0,10 per existing share x 5 = 0,50
Value per right
Value of rights to be transferred to the investment in rights account(900 rights x R0,50 per right) or (4,500 existing shares x R0,10 per existing share) or (900 new shares x R0,50 per new share) 450
3. CU
Fair value of all shares on date of sale (4,500 + 1,500 shares x CU3,90) 23,400
Carrying amount of all shares on date of sale (CU17,400 + CU5,550) (22,650)
Fair value adjustment 750
4. CU
Fair value of all rights on date of sale (900 + 200 rights x R0,66) 726
Carrying amount of all rights on date of sale (CU450 + CU128) (578)
Fair value adjustment 148
5. Exercise rights (convert rights into shares): CU
– Pay in cash (CU3,30 x 700 new shares) 2,310
– Transfer rights value to shares (R0,66 x 700 rights) 462
Total value recognised in investment in shares account 2,772
6. CU
Fair value of all shares on date of sale (5,200 + 700 shares x CU4,00) 23,600
Carrying amount of all shares on date of sale (CU20,280 + CU2,310 + CU462) (23,052)
Fair value adjustment 548
7. CU
Fair value of shares (500 shares x CU3,50) 1,750
Carrying amount of shares (CU1,600 + CU405) (2,005)
Fair value adjustment (255)

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