- June 16, 2020 at 4:00 am
RSV Bhd Statement of Financial Position as at 31 December 2018
Non current assets RM30,000
Less Accumulated Depreciation (RM10,000)
Preference share capital RM5,000
Ordinary share capital RM15,000
Retained profits RM13,000
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.
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.
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.
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