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QUESTION 3(11 marks)
Midrand Ltd acquired a 90% interest in Bramely Ltd on 2 December 20.21 for R2 million. The consideration was settled as follows:
\table[[,R],[Cash payment,,1000000],[Issue of 100000 shares to the seller,650000],[Issue of debentures to the seller,450000]]
Legal and other costs incurred in relation to the acquisition of the shares in relation to Bramely Ltd amounted to R126000. Costs to issue the shares and the debentures amounted to R89000 and R77500 respectively.
\table[[REQUIRED QUESTION 3,MARKS],[\table[[Prepare the relevant journal entries to record the above transactions.],[Journal narrations are required]],11
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