1. The following list of balances appears, amongst others, in the accounting records of VanDerZon Ltd on 31 December 2020: R Ordinary share capital (shares issued at R0,50 each) Proceeds of 1 500 000 ordinary shares issued on 31 October 2020 5 000 000 1 125 000 The following decision that must still be recorded was ratified by the directors, on 31 December 2020: Capitalisation shares must be issued to the ordinary shareholders that are registered in the share register on 31 December 2020, in the ratio of one ordinary share for every five ordinary shares held at RO,65 per share. Which one of the following options represents the Rand-value of the shares that must be capitalised? 1. R520 000 2. R1 150 000 3. R1 495 000 4. R2 550 000
1. The following list of balances appears, amongst others, in the accounting records of VanDerZon Ltd on 31 December 2020: R Ordinary share capital (shares issued at R0,50 each) Proceeds of 1 500 000 ordinary shares issued on 31 October 2020 5 000 000 1 125 000 The following decision that must still be recorded was ratified by the directors, on 31 December 2020: Capitalisation shares must be issued to the ordinary shareholders that are registered in the share register on 31 December 2020, in the ratio of one ordinary share for every five ordinary shares held at RO,65 per share. Which one of the following options represents the Rand-value of the shares that must be capitalised? 1. R520 000 2. R1 150 000 3. R1 495 000 4. R2 550 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1.
The following list of balances appears, amongst others, in the accounting records of
VanDerZon Ltd on 31 December 2020:
R
Ordinary share capital (shares issued at R0,50 each)
Proceeds of 1 500 000 ordinary shares issued on 31 October 2020
5 000 000
1 125 000
The following decision that must still be recorded was ratified by the directors, on
31 December 2020:
Capitalisation shares must be issued to the ordinary shareholders that are registered in the
share register on 31 December 2020, in the ratio of one ordinary share for every five
ordinary shares held at R0,65 per share.
Which one of the following options represents the Rand-value of the shares that must be
capitalised?
1. R520 000
2. R1 150 000
3. R1 495 000
4. R2 550 000
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