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COURSE: DIPLOMA IN ACCOUNTING / SUBJECT: TAXATIONChapter 3 Tutorial - Part 1 : Issuance / Terbitan On 1 s t January 2 0 2 0
COURSE: DIPLOMA IN ACCOUNTING SUBJECT: TAXATIONChapter Tutorial Part : IssuanceTerbitan
On January Aroi Bhd issued million redeemable preference shares at
RM each, redeemable at a premium of on December Interest is
payable on paidup capital. The effective interest rate is and the interest is paid on
every December. The market price of the shares in the following year is shown below:
Show the calculation where the preference shares are measured at:
i Amortized cost.
ii Fair value through profit or loss.
Prepare the relevant journal entries for both measurements. Refer to the journal entries
of the issuance of debentures in the lecture notes.
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