Given information for questions 4 :

The following information pertains to Tlali Ltd:

Tlali Ltd was incorporated on 1 January 2018 with an authorised share capital of 55 000 ordinary shares.

On 1 February 2018, the incorporators of the company subscribed to 5 000 ordinary shares at a deemed value of R5 000 and paid it in full. On 20 February 2018, the remaining shares were offered to the public at R1.50 per share.

Rapula Underwriters Ltd underwrites the full public issue for a 3% underwriters commission.

The public subscribed to 45 000 shares and the full amounts payable were received on the closing date of 15 April 2017. All the shares were allotted on 20 April 2018 and all transactions with the underwriter were concluded by 30 April 2018.

QUESTION 4

Which one of the following alternatives represents the correct net amount to be recorded as a settlement to/from Rapula Underwriters Ltd on 30 April 2018?

1. R5 000

2. R7 500

3. R1 800

4. R5 250