Oovenya Ltd was incorporated on 01 September 2019 with authorized share capital consisting of 400 000 10% preference shares of N$ 1 each and 2 000 000 ordinary shares of 50c each.

On 05 September 2019, the subscribers to the memorandum took and paid for 100 000 ordinary shares at par.

During the year of 2019, the remaining shares were offered to the public as follows:

The full public offer is underwritten by Virtual Underwritters Ltd for a 2% underwritter’s commission. The offer for the subscription of shares opened on 01 November 2019 and closed on 25 November 2019. The ordinary shares were offered at a premium of 20c per share and the preference shares were offered at par. The public subscribed for 600 000 preference shares and 1 500 000 ordinary shares and the full amounts payable were received on the closing date of 25 November 2019. All shares were allotted on 15 December 2019, the necessary refunds were made and all transactions with the underwriter were also concluded on this date. All expenses regarding the issue of shares and incorporation must be written off against the share premium account.

The balance of the share premium account as at 15 December 2019 will be as follows:

Select one:

a. N$ 276 000

b. N$ 404 000

c. N$ 380 000

Answer rating: 100% (QA)

Figures in N unless indicated other wise C... View the full answer