- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
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 RM33,000Preference share capital RM5,000
Ordinary share capital RM15,000
Retained profits RM13,000
TOTAL RM33,000Required :
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]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.
- You must be logged in to reply to this topic.