COURSE: DIPLOMA IN ACCOUNTING

SUBJECT: FINANCIAL ACCOUNTING & REPORTING V

I NEED ANSWER FOR ALL

UDE 2006 Financial Accounting and Reporting V Chapter 4 Tutorial Given below is the statement of financial position of Capital Bhd as at 31 December x9. The following values are applicable to the assets of the company: A special resolution was passed, and the approval of the court was obtained for the following scheme of capital reduction. - Ordinary shares were reduced to RM3.00 each. - Part of the cash raised by this issue is to be used to settle two third of the trade payables. You are required to prepare the: i. Journal entries to give effect to the scheme. ii. Capital reduction account. iii. Statement of financial position of the company immediately after the capital reduction