Neco 2025 Financial Accounting Question 24

Alpha Ltd had the following equity balances at the beginning of the year: Share capital (ordinary) \(\text{₦}500,000\), Share premium \(\text{₦}150,000\), and Retained earnings \(\text{₦}200,000\). During the year the company: (i) issued 5,000 new ordinary shares with a nominal value of \(\text{₦}20\) each at \(\text{₦}40\) per share; (ii) earned profit before tax of \(\text{₦}120,000\) and paid tax at 30 %; (iii) paid dividends of \(\text{₦}40,000\); (iv) revalued its land, increasing its value by \(\text{₦}50,000\) (transfer to revaluation reserve); (v) wrote off a bad debt of \(\text{₦}10,000\); and (vi) bought back its own shares costing \(\text{₦}30,000\). Prepare a statement of changes in equity showing the closing balances of each component and compute the total equity at year‑end.