Tshilangoma Ltd has a financial year end of 31 January. The company has the following share capital structure: Authorised share capital 500 000 ordinary shares 200 000 10% preference shares Issued share capital 350 000 ordinary shares valued at R550 000. The 150 000 of these shares remained unchanged for the full year whilst the remainder were issued on 1 January 2020 at R2 per share. These shares issued during the year were underwritten at a commission of 1,5% which was paid on the date of issue. A total of 210 000 applications were received for these shares. 120 000 10% preference shares. The 60 000 of these shares remained unchanged for the full year and were issued for R120 000. The remainder were issued on 31 October 2019 for a consideration of R180 000. On 31 January 2020, the board of Tshilangoma Ltd decided to issue capitalisation shares to ordinary shareholders at a ratio of 1 share for every 4 ordinary shares held at a fair value consideration of R2,20 per share. The capitalisation issue to ordinary shareholders was funded out of retained earnings. The preference shareholders were paid a cash dividend at the end of the year. According to the company's solvency and liquidity test, it had sufficient cash and retained earnings to pay the dividends to ordinary and preference shareholders. QUESTION 1 Which one of the following alternatives represents the correct number of ordinary shares issued by Tshilangoma Ltd during the current financial year ended 31 January 2020? A. 200 000 B.210 000 C. 150 000 D. 350 000 E. 550 000 QUESTION 2 Which one of the following alternatives represents the correct amount of commission paid to the underwriter for the issue of ordinary shares on 1 January 2020? A. 3 000 B.2 250 . C. 6 000 . D. 5 250 E. 10 500 QUESTION 3 Which one of the following alternatives represents the correct number of capitalisation shares offered of or to the ordinary shares on 31 January 2020? . A. 37 500 . B. 87 500 C. 100 000 . D. 50 000 . E. 192 500 QUESTION 4 Assume that the correct number of capitalisation shares is 101 000. Which one of the following alternatives represents the correct value of the capitalisation share issue to ordinary shareholders of Tshilangoma Ltd? A. 110 000 B. 192 000 C. 190 000 D. 222 200 E. 192 500 QUESTION 5 Which one of the following alternatives represents the correct preference share dividend paid to preference shareholders at year ended 31 January 2020? A. 16 500 . B. 30 500 . C. 12 500 . D. 12 000 . E. 30 000