LOYISO LIMITED entered into the following share transactions in Anathi Limited, a company listed on the JSE Limited, during the reporting period ended 31 December 2019:
| 01/01 | Balance of 2,000 ordinary shares at CU2,25 each, which was the closing price on the JSE Limited on 31 December 2018. |
| 07/01 | Purchased 2,000 ordinary shares for cash at the fair value of CU2,00 each. |
| 15/01 | Sold 400 ordinary shares for cash at the net fair value received of CU2,05 each. |
| 14/02 | Anathi Limited had a capitalisation issue of one ordinary share for every 4 ordinary shares held on 1 February 2019. The fair value per ordinary share immediately prior to the capitalisation issue, was CU2,12 each. |
| 26/02 | Sold 250 ordinary shares for cash at the net fair value received of CU1,45 each. |
| 06/03 | Anathi Limited had a rights issue of 1 right to 1 ordinary share at CU1,20 per share for every 5 ordinary shares held on 1 March 2019. The closing price per ordinary share on 5 March 2019 was CU1,68. The rights are valid until 1 December 2019. |
| 20/06 | Sold 400 rights to ordinary shares for cash at the net fair value received of R0,40 each. |
| 02/08 | Purchased 300 rights to ordinary shares for cash at the fair value of R0,55 each. |
| 22/11 | Exercised 500 rights to ordinary shares. The entity choose to do a fair value on the rights immediately prior to the rights being exercised. The fair value of the rights on 21 November was R0,48 each. |
| 30/11 | Sold 100 rights to ordinary shares for cash at the net fair value received of R0,42 each and sold 1 000 ordinary shares for cash at the net fair value received of CU1,70 each. |
Additional information:
| 1. | Rights are not acquired for hedging purposes. |
| 2. | On 31 December 2019, the closing price on the JSE Limited for an ordinary share of Anathi Limited was CU1,80. |
| 3. | Brokerage has already been included in the price paid and has been deducted from the net selling price received. The brokerage per share per purchase or sale transaction is R0,05. |
REQUIRED
Prepare the accounts for the investment in ordinary shares and the investment in rights to ordinary shares of Anathi Limited in the general ledger of Loyiso Limited for the year ended 31 December 2019.
| NOTE: | – Round all final amounts calculated to the nearest CU1. |
| – Round cents per share/rights to two decimal places. | |
| – The general ledger accounts must be properly closed off. |
🇿🇦 Loyiso is a Xhosa name meaning “victory”.
🇿🇦 Anathi is a unisex name meaning “they are with us”.
