QUESTION $3(11$ marks$)$

Midrand Ltd acquired a $90\%$ interest in Bramely Ltd on $2$ December $20\mathrm{.}21$ for R$2$ million. The

consideration was settled as follows:

Legal and other costs incurred in relation to the acquisition of the shares in relation to Bramely Ltd

amounted to R$126000.$ Costs to issue the shares and the debentures amounted to R$89000$ and R$77$

$500$ respectively.Midrand Ltd acquired a $90\%$ interest in Bramely Ltd on $2$ December $20\mathrm{.}21$ for R$2$ million. The consideration was settled as follows:

R

Cash payment,

$1000000$

Issue of $100000$ shares to the seller

$650000$

Issue of debentures to the seller

$450000$

Legal and other costs incurred in relation to the acquisition of the shares in relation to Bramely Ltd amounted to R$126000.$ Costs to issue the shares and the debentures amounted to R$89000$ and R$77500$ respectively.

REQUIRED QUESTION $3$

MARKS

Prepare the relevant journal entries to record the above transactions.

Journal narrations are required

$11$

Your answer should comply with the requirements of International Financial Reporting Standards $($IFRS$$s$).$