Page 62 - Ebook Financial Accounting 3
P. 62
Answer:
Debit Credit
RM RM
6% Redeemable preference shares capital 22,000,000
Preference share redemption account 22,000,000
(Redeemable preference shares are being redeemed)
Preference share redemption account 22,000,000
Bank 22,000,000
(Payment made to the 6% redeemable preference
shareholders)
Retained profits 22,000,000
Ordinary Share capital 22,000,000
(Transfer of profit to contributed capital)
Sapphire Bhd
Statement of Financial Position
RM
Non-current assets 70,000,000
Current assets (except cash at bank) 15,000,000
Cash at bank 28,000,000
113,000,000
Equity
Issued share capital
40,000,000 ordinary shares, fully paid up 70,000,000
Retained profits 28,000,000
Current liabilities 15,000,000
113,000,000
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