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Accounting Paper 1, November 2024, question 3.5.1

Accounting P1 · Companies share capital and equity
3.5.13 marks
Thandi Mokoena owned 840 000 of the 2 000 000 shares that Zulu Traders Ltd had in issue on 1 April 2024. On 30 September 2024 the company offered every shareholder 3 new shares for every 20 shares already held, at a reduced price. Thandi took up her full right. Calculate how many shares Thandi bought through this rights issue.

NSCBased on Nov 2024 · Paper 1 · Q3.5.1

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What examiners found

The rights issue ratio was not applied correctly, so the number of extra shares was wrong.

In our words. Source: Department of Basic Education, NSC 2024 Diagnostic Report, Part 1 (Book 1), Q3.5.

Updated