1. a. Given below is the statement of financial position of Lesus Bhd, as at 31 December 2017. Land and building Motor vehicles Plant Inventories Trade receivables RM 100,000 50.000 50,000 50,000 40,000 290,000 Ordinary share of RM1 each Accumulated loss 300,000 (180,000) 120,000 Trade payables Bank overdraft 80,000 90,000 290,000 The following values are applicable to the assets of the company: As a going concern If liquidate (value in use) (selling price) RM RM Land and building 100,000 100.000 Motor vehicles 40,000 20,000 Plant 30,000 30,000 Inventories 50,000 5,000 Trade receivables 40,000 30,000 Additional Information: i. Ordinary shares were reduced to 30 sen each fully paid up and the existing ordinary shareholders have agreed to take up two fully paid ordinary shares for every one held. ii. Part of the cash raised by this issue is to be used to settle the bank overdraft. Required: a. Prepare the journal entries to give effect to the scheme. b. Capital Reduction account. c. Statement of financial position of the company immediately after the capital reduction. (Total : 20)