Neco 2024 Financial Accounting Question 5

The equity of XYZ Ltd. as at 1 January 2024 is as follows:\n- Share capital: 1,000,000 ordinary shares of \( \text{₦}10 \) each, fully paid (\( \text{₦}10,000,000 \))\n- Share premium account: \( \text{₦}200,000 \)\n- Revaluation surplus on property: \( \text{₦}150,000 \)\n- Retained earnings (beginning): \( \text{₦}500,000 \)\n\nDuring 2024 the following events occurred:\n1. The company issued 200,000 new shares at \( \text{₦}15 \) each (including premium).\n2. An interim dividend of \( \text{₦}5 \) per share was declared and paid on the shares outstanding before the new issue.\n3. Another property was revalued, creating an additional revaluation surplus of \( \text{₦}80,000 \).\n4. The company incurred a loss before tax of \( \text{₦}120,000 \) and tax expense of \( \text{₦}30,000 \) (loss after tax = \( \text{₦}90,000 \)).\n5. The loss after tax was transferred to retained earnings.\n\nCalculate the total shareholders' equity of XYZ Ltd. as at 31 December 2024.