Given below is the statement of financial position of Despair Bhd as at 31 December 2021. RM'000 Ordinary shares of RM1 each 250,000 Share premium 25,000 (95,000) Accumulated loss 8% Debentures 50,000 8,000 Loans from directors Trade payables 25,000 263,000 Non-current assets Furniture and fixtures (NBV) 95,000 Motor vehicles (NBV) 60,000 Research and development 45,000 Current assets Inventories 35,000 15,000 Trade receivables Prepayments 13,000 263,000 The company has experienced some financial difficulty and decided to reconstruct is affairs. The company passed a special resolution and the approval of the court was obtained for the following scheme of reconstruction: 1. Each ordinary share is to be reduced by 75 sen each. The existing ordinary shareholders agreed to subscribe for a new issue on the basis of 1 to 1 at a price of 30 sen per share. 2. RM4,000,000 of directors' loan is to be cancelled. The balance is to be settled by the issue of 16,000,000 ordinary shares of 25 sen each. 3. Intangible assets and the accumulated loss are to written off. 4. The remaining assets were professionally valued and should be recorded in the accounts as follows: RM'000 Furniture and fixtures 80,000 Motor vehicles 52,500 Inventories 25,000 5. Cost of reconstruction amounted to RM1.2 million. 6. Any capital reserve arising on the reconstruction scheme is used to issue bonus shares. You are required to prepare a) Capital reduction account b) Statement of financial position of Despair Bhd immediately after the reconstruction