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Dashboard / My courses / FAC2601-25-S1 / Welcome Message / Assessment 1 - MCQ (28 March 2025)
Started on Friday, 28 March 2025, 2:54 PM
State Finished
Completed on Friday, 28 March 2025, 3:15 PM
Time taken 20 mins 59 secs
Question 1
Complete
Marked out of 2.00
Capital contributed by the shareholders of a company is known as share capital. When companies require additional funds from the
public, the company would normally use the services of a financial institution to handle the additional share issue on their behalf.
Craft Ltd underwrites an issue of 250 000 ordinary shares at R3 each in Sontech Ltd. Craft Ltd charges commission of 8% for their
services . The public took up 235 000 of the shares that were on offer.
Required:
What will the commission payable be to Craft Ltd?
1. R60 000
2. R45 000
3. R85 000
4. R100 000
, Question 2
Complete
Marked out of 2.00
Dashboard Calendar
The following balances were taken from the books of KZN Ltd on 31 December 2024, the financial year end of the company:
Dashboard / My courses / FAC2601-25-S1 / Welcome Message / Assessment 1 - MCQ (28 March 2025)
R
Issued Ordinary share capital (R1 shares) 1 250 000
135 000 12% non-cumulative preference shares 420 000
80 000 8% cumulative preference shares 250 000
Retained earnings 950 000
Occasionally companies build up large reserves from their accumulated profits. To enable shareholders to derive some tangible
benefits from these reserves, the company may decide to capitalise these reserves and distribute them among the shareholders in the
form of capitalisation shares.
Included in the capital structure above are the following transaction that took place during the current financial year that ended on 31
December 2024:
· A Capitalisation issue that the directors made on 1 December 2024 of one ordinary share for every three shares held at R1,00 per
share;
The directors of the company also approved the following transactions during the year:
· The issue of 10 000 8% cumulative preferences shares at R4 per share on 1 September 2024.
· Dividends on ordinary shares was declared at 5c per share on 31 December 2024. No dividends were declared or paid during the
previous financial year.
Required:
What will the rand value be of the capitalization share issue, issued to shareholders at 1 December 2024?
1. R312 500
2. R420 000
3. R300 000
4. R416 667
Dashboard / My courses / FAC2601-25-S1 / Welcome Message / Assessment 1 - MCQ (28 March 2025)
Started on Friday, 28 March 2025, 2:54 PM
State Finished
Completed on Friday, 28 March 2025, 3:15 PM
Time taken 20 mins 59 secs
Question 1
Complete
Marked out of 2.00
Capital contributed by the shareholders of a company is known as share capital. When companies require additional funds from the
public, the company would normally use the services of a financial institution to handle the additional share issue on their behalf.
Craft Ltd underwrites an issue of 250 000 ordinary shares at R3 each in Sontech Ltd. Craft Ltd charges commission of 8% for their
services . The public took up 235 000 of the shares that were on offer.
Required:
What will the commission payable be to Craft Ltd?
1. R60 000
2. R45 000
3. R85 000
4. R100 000
, Question 2
Complete
Marked out of 2.00
Dashboard Calendar
The following balances were taken from the books of KZN Ltd on 31 December 2024, the financial year end of the company:
Dashboard / My courses / FAC2601-25-S1 / Welcome Message / Assessment 1 - MCQ (28 March 2025)
R
Issued Ordinary share capital (R1 shares) 1 250 000
135 000 12% non-cumulative preference shares 420 000
80 000 8% cumulative preference shares 250 000
Retained earnings 950 000
Occasionally companies build up large reserves from their accumulated profits. To enable shareholders to derive some tangible
benefits from these reserves, the company may decide to capitalise these reserves and distribute them among the shareholders in the
form of capitalisation shares.
Included in the capital structure above are the following transaction that took place during the current financial year that ended on 31
December 2024:
· A Capitalisation issue that the directors made on 1 December 2024 of one ordinary share for every three shares held at R1,00 per
share;
The directors of the company also approved the following transactions during the year:
· The issue of 10 000 8% cumulative preferences shares at R4 per share on 1 September 2024.
· Dividends on ordinary shares was declared at 5c per share on 31 December 2024. No dividends were declared or paid during the
previous financial year.
Required:
What will the rand value be of the capitalization share issue, issued to shareholders at 1 December 2024?
1. R312 500
2. R420 000
3. R300 000
4. R416 667
