QUESTION 5 World Cup Ltd was registered on 1 March 2020 with an authorised share capital of 500 000 ordinary shares with no par value. During March 2020, 100 000 ordinary shares were offered to the founders of the company at R10 each. These shares were taken up and paid for by the founders. On 1 May 2020 the company offered 60% of the authorised ordinary shares at R15 each for subscription to the public. Applications for 350 000 shares were received by 15 June 2020, the closing date for applications. On 30 June 2020 the shares were allotted and the money repaid to the unsuccessful applicants. Which one of the following alternatives represents the correct journal entry for the allotment of shares to successful applicants on 30 June 2020 by World Cup Ltd? 1. Debit Credit Application and allotment: Ordinary shares 4 500 000 Ordinary share capital 4 500 000 R R 2. Debit R 5 250 000 Credit R Application and allotment: Ordinary shares Ordinary share capital 5 250 000 3. Debit R 4 500 000 Credit R Ordinary share capital Application and allotment: Ordinary shares 4 500 000 Debit R 5 250 000 Credit R Ordinary share capital Application and allotment: Ordinary shares 5 250 000 QUESTION 6 Soccer Ltd was incorporated on 1 March 2020 with an authorised share capital of 300 000 ordinary shares with no par value. During March 2020, 50 000 ordinary shares were offered to the founders of the company at R10 each. These shares were taken up and paid for by the founders. On 1 May 2020 the company offered 70 000 ordinary shares at R10 each for subscription to the public. The issue was underwritten by Rugby Investment Bank at a commission of 4%. Applications for 50 000 shares were received by 5 June 2020, the closing date for applications. The shares were allotted on 15 July 2020 and all transactions were Which one of the following alternatives represents the amount that Rugby Investment Bank Ltd had to pay to Soccer Ltd in full settlement when all transactions were finalised on 15 July 2020? 1. Debit R 28 000 Credit R Underwriters commission (P&L) Rugby Investment Bank (Account Payable) 28 000 2. Debit R 172 000 Credit R Rugby Investment Bank (Account Payable) Bank 172 000 3. Debit Credit R Bank Rugby Investment Bank (Account Receivable) R 172 000 172 000 4. Credit Debit R 200 000 R Bank Rugby Investment Bank Account Receivable) 200 000