Calculate the opening balances for Ordinary Share Capital, Retained Earnings, SARS: Income Tax, and Shareholders for Dividends.

March 30, 2026Accounting

ScanSolve AI Answer

March 30, 2026

Answer

1,200,000$ shares

Step 1: Calculate the opening balances for Ordinary Share Capital, Retained Earnings, SARS: Income Tax, and Shareholders for Dividends.

Ordinary Share Capital (1 March 2024):
- Authorised shares: $2,000,000$
- Shares in issue: $60\% \times 2,000,000 = 1,200,000$ shares
- Average issue price: R10.00 per share
- Opening balance: $1,200,000 shares \times R10.00/share = R12,000,00

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Quick Answer

Calculate the opening balances for Ordinary Share Capital, Retained Earnings, SARS: Income Tax, and Shareholders for Dividends.

Asked on March 30, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

ScanSolve AI AnswerAnswered on March 30, 2026

Step 1: Calculate the opening balances for Ordinary Share Capital, Retained Earnings, SARS: Income Tax, and Shareholders for Dividends. Ordinary Share Capital (1 March 2024): Authorised shares: 2,000,000 Shares in issue: 60\% × 2,000,000 = 1,200,000 shares Average issue price: R10.00 per share Opening balance: $1,200,000 shares × R10.00/share = R12,000,00