TechFusion Ltd. is an innovative technology company specialising in the development of sophisticated software solutions. TechFusion Ltd. has a financial year-end of 31 December.

During the 2023 financial year, the company undertook a series of transactions involving the following:

Issuing Class A and Class B Shares: TechFusion Ltd. issued 1 000 Class A shares at R100 per share and 2 000 10% Class B shares at R200 per share. The Class B shares are non-cumulative with no voting rights. All amounts were received in cash by year-end.

Dividends: The company declared and paid dividends on both Class A and Class B shares. A dividend of R3 per Class A share was declared.

Company Tax and Normal Tax: TechFusion Ltd. made a taxable profit of R300 000 and must still pay company tax (at a rate of 27%) on the profit made.

Debentures: TechFusion Ltd. issued R100 000 worth of 5% debentures on 1 January 2023. Interest on the debentures are payable on 31 December each year.

REQUIRED:

1. Prepare the necessary generaljournalentries to record transactions 1 4 inthe accounting records of TechFusion Ltd. for the financial year ended 31December2023.Datesandnarrationsarenotrequired.Besuretoclearlylabel eachentry withtheappropriatetransactionnumber.

2. AnalysethedebenturesissuedbyTechFusionLtd.intermsoftheircharacteristics and financial implications. Explain the purpose and features ofthesedebentures

3. Analyse the dividend declaration made by TechFusion Ltd. for its Class Ashares.Explain thesignificanceofthedividend amountdeclaredanditsimpact onshareholders.

4.DescribethecharacteristicsofClassBsharesissued byTechFusionLtd. Includinganyspecific rightsorrestrictionsassociatedwiththeseshares.

5. Discusstheconceptofequityinrelationtoacompany'sfinancial positionandexplain itsimportanceindetermining theowner'sclaim onthebusiness