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General ACCACan anyone help on this question?

Llibbe6y ago
RSV Bhd Statement of Financial Position as at 31 December 2018 Non current assets RM30,000 Less Accumulated Depreciation (RM10,000) =RM20,000 Current assets Bank RM13,000 TOTAL RM33,000 Preference share capital RM5,000 Ordinary share capital RM15,000 Retained profits RM13,000 TOTAL RM33,000 Required : Journal entries and statement of financial position a) RSV Bhd redeems RM5,000 preference shares, a new issue of RM5,000 ordinary shares being made for the purpose. Show the SOFP after completion of these transactions. Workings are to be shown as journal entries. [6 marks] b) RSV Bhd redeems RM5,000 preference shares, with no new issue of shares to provide funds. Show the SOFP after completing the transaction. Working show journal entries. [6 marks] c) RSV Berhad redeems RM5,000 preference shares. To help finance this an issue of RM1,500 ordinary shares is effected. Show the SOFP after these transactions have been completed; also show the necessary journal entries. [6 marks]
KimKimTutor6y ago#1
You will find notes about shares in the accounting for limited company chapters of ACCA FA (Chapter 14) and CIMA BA3 (Chapter 16) together with free lectures available at these links: https://opentuition.com/acca/fa/ https://opentuition.com/cima/cima-ba3/ For the Q as you state it - in the absence of any information to the contrary - you will have to assume redemption and issue at par value.
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