QUESTION FOR COMPANY REPORTING & ACCOUNTING

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]