Section E

Share Transactions

$20$ Marks

Question $6$

Study the scenario and complete the question that follows:

Jaggers Limited

The following information relates to Jaggers Limited for the year ended $31$ July $2019.$ The directors of Jaggers Limited decided to offer $120000$ shares to the public at R$15$ each in order to obtain the necessary funds for expansion of the business. The public was invited to submit their applications along with the relevant amount to the company. The share issue was underwritten by ASAB Bank at $3\%$ of the total issue price. By close of applications, the company had received $110000$ applications. Share issue expenses incurred amounted to R$13500.$

Source: Waka, L$.2023.$

Required

Prepare journal entries with narrations in the books of Jaggers Limited to record the share issue.

$(20$ Marks$)$

End of Section E