Q. No 4 (Issue of new shares) A company is formed on 1 January 2018 by issuing 4,000,000, RO 0.500 equity shares at a price of RO 0.500 each. Show the necessary entries to record this transaction, and what will appear in the Statement of Financial Position under the heading equity. The same company issued more shares on 30 June 2019. They issued another 2,000,000, RO 0.500 shares at a price of RO 0.800 each.

Show the necessary entries to record this transaction, and what will now appear in the Statement of Financial Position. Assume Bank balance to be RO 2,000,000 before such issue.