Question
ABC SAOG declared a 3 for 2 bonus issue. The following is the abstract of SOFP before the bonus issue: Share capital consisting of ordinary
ABC SAOG declared a 3 for 2 bonus issue.
The following is the abstract of SOFP before the bonus issue:
Share capital consisting of ordinary shares of RO 0.500 each, RO 2,000,000
Share Premium Account RO 1,000,000
Revaluation Reserve RO 1,500,000
General Reserve RO 800,000
Retained Profits RO 5,000,000
The Companys policy for the purpose of accounting for bonus issue is not to use revaluation reserve whereas retained profits should only be used if other reserves are exhausted.
State the journal entries required to account for the above transactions and prepare extract of the SOFP after bonus issue.
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Public Sector Accounting Auditing And Control In South Eastern Europe
Authors: Vesna Vašiček, Gorana Roje
1st Edition
303003352X, 978-3030033521
