Transcribed Image Text: Question 1 36.1 The equity section of the balance sheet of Lyness Ltd as at 1 January 2020 was as follows: £000 Ordinary shares of 50p each

Transcribed Image Text: Question 1
36.1
The equity section of the balance sheet of Lyness Ltd as at 1 January 2020 was as follows:
£000
Ordinary shares of 50p each
Share premium
General reserve
Retained profits
Total equity
170
110
50
402
732
During the year the following events occurred:
In March 2020 the company paid the final dividend in respect of 2019 of 8 pence per share.
In July 2020 it paid an interim dividend for 2020 of 2 pence per share.
In November 2020 the company issued 100,000 new ordinary shares at a premium of 80
pence per share.
The company reported a profit after tax of £93,000 for 2020 and made a transfer of £20,000 to
general reserve. The directors also proposed a final dividend of 13 pence per share in respect of 2020.
Required:
Prepare the Statement of Changes in Equity for Lyness Ltd for the year ended 31 December 2020.

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