Nik and Nik Co. is a company located in Klang, Selangor. It is a family-owned company that has been established 10 years ago. The company issues 150,000 redeemable preference shares at RM1. 50 per share. After 5 years, the preference shares are redeemed at RM2 per share out of profits. The preference shares are classified as a financial liability and carried at amortised cost effective interest method. At the end of Year 5 , the carrying amount of the preference share is RM 300,000. Required: a) State the requirement for the redemption of preference shares under no par regime as stated in the Companies Act 2016 b) Prepare the journal entry to record the redemption of preference share in Nik and Nik Co