Please answer to the best of your abilities.
As per chegg guidelines , don't use previous posted answers and use it as yours. If you're unable to unanswer, please don't. Kindly provide a full general journal as I've seen answer on Chegg with only half a general journal.
Mururani Ltd is company listed in the Namibia Stock Exchange (NSX) provides you with this information from their Accounting records as at 1 May 2020: 250 000 ordinary share capital at N$ 5.00 1 250 100 000 Cumulative preference share capital at N$ 2.00 200 000 Share premium 55 000 Capital redemption reserve fund 25 000 Revaluation surplus 280 000 Asset replacement reserve 100 000 Retained earnings 800 000 Income Tax ( Refund) 15 000 The board of directors of Mururani Ltd have proposed an aggressive strategic plan to expand the business operations. To finance this strategy the board 01 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 000ordinary shares at N$ 5.00, each at a premium of 50c. Additional Information: a) 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 floatation expenses amounted to N$ 16 000 was paid. b) 1 August 2020 shares and debentures were allotted to applicants and on 15 August 2020 all transactions with the underwriters were completed. c) In a bid to improve Mururani Ltds 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. d) 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 e) On 30 April 2021 : A transfer of N$ 80 000 was made to asset replacement reserve. Act Machinery was revalued at during the year resulting in a N$ 120 000 increase in the Got revaluation surplus It was proposed that ordinary shareholders will not be paid any dividend but the It was proposed that ordinary shareholders will not be paid any dividend but the preference share dividend which had accrued was to be provided for. The profit for the period amounted to N$ 1 400 000 after all adjustments pertaining to the year were made. Page 23 of 25 FACULTY OF COMMERCE, MANAGEMENT AND LAW Income tax is payable at 30 % You are required to: 2.1 Prepare the journal of Mururani Ltd to effect the above transactions (Narrations are not required) 19 marks 2.2 Prepare the following accounts in the general ledger of Mururani Ltd. Income tax payable (3 marks) Rundu investment bank Ltd (2 marks) Application and allotment: ordinary shares (2 marks) Ordinary share accounts (3 marks) 2.3 Prepare the extract of the statement of financial position for Mururani LTD as at 30 April 2021 only showing non-current liabilities (3 marks) 2.4 Explain four rights of a shareholder (4 marks) 2.5 The Companies Act prohibits the company from allocating shares for which the full purchase price has not yet been received. Answer True or False (2 marks)
