Page 60 - Ebook Financial Accounting 3
P. 60
Answer:
Debit Credit
RM RM
6% Redeemable preference shares capital 24,000,000
Preference shares redemption account 24,000,000
(Redeemable preference shares are being redeemed)
Preference shares redemption account 24,000,000
Bank 24,000,000
(Payment made to the 6% redeemable preference
shareholders)
Bank 24,000,000
Ordinary Share capital 24,000,000
(Issue of 20 million ordinary shares for cash)
A total of 20 million new ordinary shares were issued RM24 million (20 million ordinary shares
x RM1.20) to replace RM24 million 6% redeemable preference share capital redeemed.
Diamond Bhd
Statement of Financial Position
RM
Non-current assets 70,000,000
Current assets (except cash at bank) 15,000,000
Cash at bank 50,000,000
135,000,000
Equity
Issued share capital
60,000,000 ordinary shares, fully paid up 68,000,000
Retained profits 50,000,000
Current liabilities 17,000,000
135,000,000
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