Question 3 (47 Marks Part 1 (15 Marks) 1. What is the ditterence between a public company and a private company(2 Marks 2. Mention the most important aspects out Memorandam of incorporation MO14Marks) 3. List four rights of the shareholders 14Marks 4 Explain the factors than determine te dassification off edeemable preference shares as either an equity or lablay (S Marks Part 2 (32 Marks) These balances were extracted from the bools of Tembe Ltd as at 31 January 2018 Retained earnings (31 January 2018) 2.994,000 175 312 50 2250.000.00 2891.000.00 30.000.00 term loan and alotmert Shareholders for ordinary dividends avidonds ane not know Additional information On 28 February 2018 Tembo Ltd issued 877 000 ardnary shares and applications worth NS 60 000.00 were returned due to an oversubscription Underwriting commission was not accrued in the in the previous yer aid the underwriter was paid a commission of 2 %. Tembos accoumting polcy with respect to share ssue costs is to minimize distributable reserves The finall dividend was paid on 03 Febnuary 2019 Tembo Lnd had issued 15 000, IN$3, 6% cumulative preference shares on the 01 Feb ry 2016, Preference shares have never been ssued at a premium and in case of preference shanes declared they are then paid on 01 February. Furthermore, Tembo Ltd declared and paid an ordinary interm dividend of 7 cents per share on 15 February 2038 and declareda Sna dividend of N5 0.05t per share on 30 lanuary 2019 The fest dvidend ever to be paid by Tembo Lnd was the N$ 30 000.00 ordinary diwidend of the prior year. The simple incerest payable on the utstanding balance of the long term loan bears at8.5%. The interes! is payable annually on 28 Febuary and thr two capital repayments of NS Page 17ef 350 000 and N$ 400 000.00 were made on3e 2018 and 31 December reipectively. The net profit in the statement of profe or loss and comprehensive income is INS 3 827 000.00 for the year ended 33 Jamuary 2029. This is before any of the information above has been taken into You ore required to 1. Calculate the price a which each ondinary share was issued in the current year(4 2. Prepare all jounal emtries relating to the shae ssut, to be processed in 2019 financial year. (4 Marks 3. What does the accounting policy say on dsbutable neseves with relation to the Celculate the dividends paid to ondinary shaneholders during the year ended 31 January 019.(4 Marks) . Calculate the dvidends paid to prefenence shareholders during the year ended 33 anuary 2019.(4 Marks) & Calculate the Final net prof4 Marks 7. Calculate the closing retained eamings Marks) & How would you determine the total asset value of Tembo Ltd? 3 Marks) Question 3 (47 Marks Part 1 (15 Marks) 1. What is the ditterence between a public company and a private company(2 Marks 2. Mention the most important aspects out Memorandam of incorporation MO14Marks) 3. List four rights of the shareholders 14Marks 4 Explain the factors than determine te dassification off edeemable preference shares as either an equity or lablay (S Marks Part 2 (32 Marks) These balances were extracted from the bools of Tembe Ltd as at 31 January 2018 Retained earnings (31 January 2018) 2.994,000 175 312 50 2250.000.00 2891.000.00 30.000.00 term loan and alotmert Shareholders for ordinary dividends avidonds ane not know Additional information On 28 February 2018 Tembo Ltd issued 877 000 ardnary shares and applications worth NS 60 000.00 were returned due to an oversubscription Underwriting commission was not accrued in the in the previous yer aid the underwriter was paid a commission of 2 %. Tembos accoumting polcy with respect to share ssue costs is to minimize distributable reserves The finall dividend was paid on 03 Febnuary 2019 Tembo Lnd had issued 15 000, IN$3, 6% cumulative preference shares on the 01 Feb ry 2016, Preference shares have never been ssued at a premium and in case of preference shanes declared they are then paid on 01 February. Furthermore, Tembo Ltd declared and paid an ordinary interm dividend of 7 cents per share on 15 February 2038 and declareda Sna dividend of N5 0.05t per share on 30 lanuary 2019 The fest dvidend ever to be paid by Tembo Lnd was the N$ 30 000.00 ordinary diwidend of the prior year. The simple incerest payable on the utstanding balance of the long term loan bears at8.5%. The interes! is payable annually on 28 Febuary and thr two capital repayments of NS Page 17ef 350 000 and N$ 400 000.00 were made on3e 2018 and 31 December reipectively. The net profit in the statement of profe or loss and comprehensive income is INS 3 827 000.00 for the year ended 33 Jamuary 2029. This is before any of the information above has been taken into You ore required to 1. Calculate the price a which each ondinary share was issued in the current year(4 2. Prepare all jounal emtries relating to the shae ssut, to be processed in 2019 financial year. (4 Marks 3. What does the accounting policy say on dsbutable neseves with relation to the Celculate the dividends paid to ondinary shaneholders during the year ended 31 January 019.(4 Marks) . Calculate the dvidends paid to prefenence shareholders during the year ended 33 anuary 2019.(4 Marks) & Calculate the Final net prof4 Marks 7. Calculate the closing retained eamings Marks) & How would you determine the total asset value of Tembo Ltd? 3 Marks)
