1. Prepare the journal entries to effect the above transactions

2. prepare the following accounts in the general ledger

i. income tax payable

ii. rundu investment bank ltd

iii. application and allotment ordinary: ordinary shares

iv. ordinary share account

3. prepare extract of the statement of financial position for mururani ltd as at 30 april 2021 only showing non current liabilities

QUESTION 3 (30 Marks) Munurani Lid is company listed in NSX (Namibia Stock Exchange) provides you with this information from their Accounting records as at 1 May 2020 250 000 ordinary share capital at N55,00 1.250 100 000 Cumulative preference share capital at NS2,00 200.000 Share premium 55.000 Capital redemption reserve fund 25 000 Revaluation surplus 280.000 Asset replacement reserve 100.000 Retained eaming 800,000 Income tax refund) 15.000 The board of directors of Mururani Lid have proposed an aggressive strategic plan to expand the business operations to finance this strategy the board on 1 June 2020 decided to raise capital using the following means 1 10%, 50 000 debentures of N$100 each was offered at a premium of 5% payable in full on application. The debenture premium is to be amortised over the life of the debentures using the effective interest rate method at 9,2242% 2 The company issued 100 000 ordinary shares at N$5.00 each at a premium of 500 Additional information 10. The entire issue is underwritten by Rundu investment bank Ltd for a commission of 5% All debentures were taken up but applications were received for 80 000 shares. The flotation expenses amounted to N$16 000 was paid 1 August 2020 shares and debentures were allotted to applicants and on 15 August 2020 all transactions with the underwriters were completed () in a bid to improve Mururani Lids liquidity the board resolved to offer 1 capitalisation share for every 5 ordinary shares held as at 31 August 2020 This will be done in such a way that there is a minimal effect on distributable reserves (iv). These income tax transactions took place during the year 31/08/2020 Provisional payment N$210 000 28/02/2021 Provisional payment N$180 000 On 30 April 2021 A transfer of N580 000 was made to asset replacement reserve. Machinery was revalued during the year resulting in a N$120 000 increase in the evaluation surplus it was proposed that ordinary wareholders will not be paid any dividend but the preference share dividens which had accrued was to be provided for The profit for the period amounted to NS1 400 000 after all adjustments pertaining to the year were made Income tax is payable at 30% . . . . QUESTION 3 (30 Marks) Munurani Lid is company listed in NSX (Namibia Stock Exchange) provides you with this information from their Accounting records as at 1 May 2020 250 000 ordinary share capital at N55,00 1.250 100 000 Cumulative preference share capital at NS2,00 200.000 Share premium 55.000 Capital redemption reserve fund 25 000 Revaluation surplus 280.000 Asset replacement reserve 100.000 Retained eaming 800,000 Income tax refund) 15.000 The board of directors of Mururani Lid have proposed an aggressive strategic plan to expand the business operations to finance this strategy the board on 1 June 2020 decided to raise capital using the following means 1 10%, 50 000 debentures of N$100 each was offered at a premium of 5% payable in full on application. The debenture premium is to be amortised over the life of the debentures using the effective interest rate method at 9,2242% 2 The company issued 100 000 ordinary shares at N$5.00 each at a premium of 500 Additional information 10. The entire issue is underwritten by Rundu investment bank Ltd for a commission of 5% All debentures were taken up but applications were received for 80 000 shares. The flotation expenses amounted to N$16 000 was paid 1 August 2020 shares and debentures were allotted to applicants and on 15 August 2020 all transactions with the underwriters were completed () in a bid to improve Mururani Lids liquidity the board resolved to offer 1 capitalisation share for every 5 ordinary shares held as at 31 August 2020 This will be done in such a way that there is a minimal effect on distributable reserves (iv). These income tax transactions took place during the year 31/08/2020 Provisional payment N$210 000 28/02/2021 Provisional payment N$180 000 On 30 April 2021 A transfer of N580 000 was made to asset replacement reserve. Machinery was revalued during the year resulting in a N$120 000 increase in the evaluation surplus it was proposed that ordinary wareholders will not be paid any dividend but the preference share dividens which had accrued was to be provided for The profit for the period amounted to NS1 400 000 after all adjustments pertaining to the year were made Income tax is payable at 30%