Page 40 - Ebook Financial Accounting 3
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ANSWER:


               The conversion did not involve any cash flow. There will be a book entry. Capital is retained
               after the conversion.


                                      Item                                Dr                  Cr

                                                                      (RM’000)            (RM’000)
                 Convertible Preference Shares                          20,000

                 Ordinary Share Capital                                                     20,000



                                                      Be-Good Bhd

                                       Extract of Statement of Financial Position
                                                                                                 RM’000

                 Equity

                 115,000 Ordinary shares, fully paid up                                          120,000
                 Retained earnings                                                                35,000





































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