Q.No. 5 ABC SAOG has in issue 10 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of 2 for 10 shares held. Prior to issue of bonus the company had following balance in its reserves and surplus: Share premium RO 1,000,000, General Reserve RO 1,000,000, Retained earnings RO 5 million Revaluation surplus RO 2,500,000. The company has to use in priority share premium. 50% of General reserve and 10% of Retained earnings can be used for bonus shares. Journalize the entries and show its working and effect on items of Statement of Financial Position