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Question 2 ( 2 0 Marks ) Malthus Limited was incorporated on 1 March 2 0 1 0 with an authorised share capital of 5
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Malthus Limited was incorporated on March with an authorised share capital of ordinary shares of $ each with an issued capital of ordinary shares.
Relevant balance as at March :
N$
On April the directors approved a capitalisation issue of shares for every ordinary shares held at par. This was done so that there was a minimum impact on retained earnings.
On May of the shares were offered to the public at a premium of $ per share. The full Public issue is underwritten by Finesse Limited for a underwriter's commission. The closing date for the share application was June
The public subscribed for shares and the full amounts were received on or before the closing date. All the shares were allotted on July
Share issue expenses of $ were paid and all transactions with the underwriter were concluded by July All expenses regarding the share issue must be written off against the Share Premium Account.
On February :
i Profit for the period amounted $ Tax assessed on the business amounted to $
ii Land valued at $ was revalued to $
The directors proposed:
i To write of the share issue expenses and use share premium account for this purpose.
ii To transfer $ to general reserve.
iii. An ordinary shares dividend of cents per share to be paid on March
REQUIRED:
Record the transactions for the period in the General Journal of Malthus Limited. Journal narrations are not required. marks
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