Gce Model Questions Vol1 2020 Financial Accounting Question 28

During the year a company had the following transactions:\n\n- Opening share capital of 500,000 ordinary shares of £1 each.\n- On 1 April the company issued 100,000 new ordinary shares at £2 each (including share premium).\n- A cash dividend of 5 % of the nominal value was declared on the total number of shares after the issue.\n- Net profit before goodwill amortisation was £120,000.\n- Goodwill amortisation of £15,000 is charged each year (non‑cash).\n- The company has a revaluation surplus of £30,000 carried forward from the previous year.\n\nCalculate (a) the weighted‑average number of shares for the year, (b) earnings per share (EPS) after goodwill amortisation, (c) the total cash dividend payable, (d) the profit available for distribution after the dividend, and (e) the closing balance of the share‑premium account.