General ledger of Loyiso Limited
| 1.1 |
CU(2,00 – 0,05) brokerage |
CU1,95 |
| 1.2 |
CU(2,05 + 0,05) brokerage |
CU2,10 |
| 1.3 |
CU(1,45 + 0,05) brokerage |
CU1,50 |
| 1.4 |
CU(0,40 + 0,05) brokerage |
CU0,45 |
| 1.5 |
CU(0,55 – 0,05) brokerage |
CU0,50 |
| 1.6 |
CU(0,42 + 0,05) brokerage |
CU0,47 |
| 1.7 |
CU(1,70 + 0,05) brokerage |
CU1,75 |
NB: Brokerage (transaction costs) are excluded from prices for financial assets at fair value through profit or loss. Transaction costs are expensed immediately. It is therefore deducted from the purchase price and added to the selling price for purposes of adding it back.
Calculations
| 1. |
CU |
| Fair value of all shares on date of sale (2,000 + 2,000 shares x 1.2CU2,10) |
8,400 |
| Carrying amount of all shares on date of sale (CU4,500 + CU3,900) |
(8,400) |
| Fair value adjustment |
– |
| 2. |
CU |
| Fair value of all shares on date of sale (3,600 + 900 shares x 1.3CU1,50) |
6,750 |
| Carrying amount of all shares on date of sale (CU7,560 + CU1,908) |
(9,468) |
| Fair value adjustment |
(2,718) |
| 3. |
CU |
| Fair value of all shares prior to rights issue (4,250 shares x CU1,68) |
7,140 |
| Carrying amount of all shares prior to rights issue |
(6,375) |
| Fair value adjustment |
(765) |
| 4. |
Number of shares and R/s |
Amount
CU |
| Before rights issue |
4,250 x CU1,68 |
7,140 |
| Rights issue (4,250 / 5 = 850 rights x 1 share per right = 850 shares) |
850 x CU1,20 |
1,020 |
|
5,100 x CU1,60 |
8,160 |
|
CU |
| Ex-rights value per share (CU8,160/5,100) |
1,60 |
| Rights issue price |
1,20 |
| Value per new share |
0,40 |
OR:
|
CU |
| Cum rights value per share |
1,68 |
| Ex rights value per share |
1,60 |
| Value change per existing share |
0,08 |
OR:
|
CU |
| 5 existing shares = 1 right = 0,08 per existing share x 5 = |
|
| value per right |
0,40 |
|
|
| Value of rights to be transferred to the investment in rights account(850 rights x R0,40 per right) or (4,250 existing shares x R0,08 per existing share) or (850 new shares x R0,40 per new share) |
340 |
| 5. |
CU |
| Fair value of all rights on date of sale (850 rights x 1.4R0,45) |
382,50 |
| Carrying amount of all rights on date of sale |
(340,00) |
| Far value adjustment |
42,50 |
| 6. |
CU |
| Fair value of all rights before exercised (450 + 300 rights x R0,48) |
360,00 |
| Carrying amount of all rights before exercised (CU202,50 + CU150) |
(352,50) |
| Fair value adjustment |
7,50 |
| 7. |
CU |
| Exercise rights (convert rights into shares):Pay in cash (CU1,20 x 500 new shares) |
600 |
| – Transfer right value to shares (R0,48 x 500 rights) |
240 |
| Total value recognised in investment in shares account |
840 |
| 8. |
CU |
| Fair value of all rights on date of sale (250 rights x 1.6R0,47) |
117,50 |
| Carrying amount of all rights on date of sale (CU202,50 + CU150 + CU7,50 – CU240) |
(120,00) |
| Fair value adjustment |
(2,50) |
| 9. |
CU |
| Rights expired to be written off (150 x R0,47) |
70,50 |
| 10. |
CU |
| Fair value of all shares on date of sale (4,250 + 500 shares x 1.7CU1,75) |
8,312,50 |
| Carrying amount of all shares on date of sale (CU6,800 + CU600 + CU240) |
(7,640,00) |
| Fair value adjustment |
672,50 |
| 11. |
CU |
| Fair value of shares (CU1,80 x 3,750 shares) |
6,750,00 |
| Carrying amount of shares (CU1,75 x 3,750 shares) |
(6,562,50) |
| Fair value adjustment |
187,50 |
