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FAC2601 Assignment 01 Semester 1 2021
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- University Of South Africa (Unisa)
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FAC2601/001/3/2021FAC2601
ASSIGNMENT 01 SEMESTER 01
UNIQUE NUMBER: 645062
NB: Please note that all calculations/workings are
shown
5
, ASSIGNMENT 01 (20 marks) (24 minutes)
ACADEMIC YEAR 2021
MULTIPLE CHOICE QUESTION ASSIGNMENT
Answer the following multiple-choice questions. Indicate your choice by selecting only one
option from the four options given for each question answered.
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) 5 000 000
Proceeds of 1 500 000 ordinary shares issued on 31 October 2020 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
ANSWER is 3
Amount of shares at the beginning (R5 000 000/R0,50) = 10 000 000 shares
Proceeds of issued shares during the year = 1 500 000 shares
Rand-Value of shares that must be capitalized
(10 000 000 + 1 500 000)/5 x R0.65 = R1 495 000
6
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