QUESTION $2(25$ Marks$)$

On $1$ January $2011($date of incorporation$)$ Technocrat Limited issued:

$-100000$ ordinary shares at R$3,50$ each.

$-5000010\%$ non$-$cumulative, non$-$redeemable preference shares at R$2$ each.

$-$ Half of the authorised ordinary and preference shares have been issued.

The preference dividends are discretionary dividends. All preference dividends were declared and paid

before year end with the exception of $2016,$ when the preference dividend was declared but not yet paid at

$31$ December $2016.$

REQUIRED:

Provide all journal entries from the date of issue of the preference and ordinary shares to $31$ December

$2016.$