Response to the following problem:
The following information relates to the books of Randburg limited Balance of accounts in the general ledger of Randburg limited on 31 July 2014 are as Follows:
Retained Earnings 1 August 2013 697400
Ordinary share capital 850000
10% preference share capital 500000
Land and buildings 2595000
Equipment 245000
Replacement Reserve 85000
Accumulated depreciation: Equipment 55000
Trading inventory 131000
Debtors control 87500
Allowance for credit losses 3000
Bank 33500
Petty cash 2900
Investment: 10 000 ordinary shares in AA LTD 100000
Creditors control 31300
Mortgage loan 720000
Net profit before tax 253200
Additional information
1. The company tax rate is 28%
2. R15000 must be transferred to the replacement reserve.
3. Provide for the preference dividend at year end as well for a final dividend of 10c per Ordinary share issued. At 31 July 2014 there were 200 000 ordinary shares in issue.
4. Land and buildings were revalued from R2 595 000 to R2 900 000 during the past Financial year but this revaluation has not yet been recorded.
5. A fresh issue of 20 000 ordinary shares took place during the past financial year at an Issuing price of R5 per share. The issue has been properly recorded.
Required :
Prepare the Statement of changes in equity for the year ended 31 July 2014 .