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Share Capital - Solution

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35 views7 pages

Share Capital - Solution

Uploaded by

THABANG
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1 Ledger Accounts

1
Question 2

Dr Bank Cr
20.1 R 20.1 R
May Application & allotment: Ordinary Oct Application & Allotment: 750
2 shares R(4 500 x 1.5) 6 750 1 Ordinary Shares
Applications & allotment:
Preference shares: (1 000 x R0.9) 900 Balance c/d 6 900

7 650 7 650
Balance b/d 6 900

Dr Applications and allotment: Ordinary Shares Cr


20.15 R
Share capital: Ordinary shares 6 000 Feb Bank: Ordinary shares 6 750
(4 000 x 1.5)
Bank: Refund unsuccessful appl 750
6 750 6 750

Dr Applications and allotment: Preference shares Cr


20.15 R
Share capital: Ordinary shares 900 Feb Bank: Preference 900
shares
900 900

Dr Share capital: Ordinary shares Cr

R
Applications & allotment: Ordinary shares 6 000

Dr Share capital: Preference shares Cr

R
Applications & allotment: Preference shares 900

2
3
Question 3
Dr Underwriters commission (Income & Expense) Cr

20.1 R
1 Jan Accounts payable 2 500

Dr Accounts Payables Cr
R 20.1 R
Bank: Underwriters commission 2 500 Underwriters commission 2 500
2 500 2 500

Debit side (2 500 + 47 500) = 50 000


Dr Bank Cr
R R
Applications & Allotment: Accounts payables:
Ordinary share (16 000 x 2.5) 40 000 Underwriters commission 2 500

Accounts receivables: Shares Balance c/d (50k – 2.5k) 47 500


issued to the underwriter 10 000

50 000 50 000

Balance b/d 47 500

Dr Applications and allotment: Ordinary share Cr


20.15 R
Share capital: Ordinary share 40 000 Feb Bank: Ordinary 40 000
shares
Share capital: Ordinary shares 10 000 Bank: Shares issued 10 000
to the underwriter
50000 50 000

Dr Share capital: Ordinary shares Cr


R
Applications and allotment 40 000
Share capital: Ordinary shares 10 000
50 000

4
Dr Accounts Receivables Cr

R 20.1 R
Applications and allotment: 10 000 Bank: Shares issued to 10 000
underwriters

10 000 10 000

Question 4

200 000 / 4 = 50 000


50 000 x R1 = R50 000

5
Example 5

6
Preference shares dividend = 1 000 x R1,50 = R1 500 x 10% = R150 (per value)

Ordinary dividend = 4 000 x R0.2 = 800 (calculate per number of shares: It doesn’t
matter what was the value of share capital)

4 000 issued at R10 = 40 000 x 0.2 X


4 000 x 0.2 = 800

When a company declares an ordinary dividend it means it also


declares a preference dividend.

An ordinary dividend is not proportionally calculated for the


ordinary shares that were issued or bought during the year.

A preference dividend is proportionally calculated for the


preference shares that were issued during the year.

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