Question 1

a. Pamelo Bhd. has issued and paid-up capital of RM45,000,000 comprising 45,000,000 ordinary shares fully paid. Due to the depressed economic condition, it purchased 2,000,000 of its ordinary shares from the open market at a price of RM1.50 each on 31 December 2019. The brokerage fees and commissions incurred RM30.000. The retained profits as at that date amounted to RM4.000,000. Pamelo Bhd_ decided to write off the shares purchased. You are required to prepare the: L journal entries to show the effect of the above transactions. (2 marks) i. extracted statement of financial position after the purchase is completed. (3 marks)a. On 1" January 2017, Sonny Bhd. issued 10 million 5% redeemable preference shares at RM1 each, redeemable at a premium of 10% on 31" December 2020. Dividend is payable on paid-up capital. The effective interest rate is 7.3% and the interest date is 31" December. Prepare the appropriate journal entries and other relevant accounting treatments for the preference shares if it is measured at amortized cost. (7 marks) b. Juwita Bhd. acquires 1,000,000 ordinary shares of Bizarre Bhd. from the open market at a price of RM5 per share. Brokerage and other charges are RM50,000. Calculate the amount that should be recorded for the investment, if Juwita Bhd. categorized the investment as: 1. available for sale. (2 marks li. fair value through profit or loss. (2 marks) c. On 1 January 2019, the fair value of plan assets of Sofwan Bhd. was RM100 million and the net cumulative unrecognized actuarial gain was RM12 million. On 1 July 2019, the plan paid RM15 million benefits and only received contribution of RM38 million. The fair value of the plan assets on 31 December 2019 was RM135 million. On 1 January 2020, the following estimates were made: 9% Dividend and interest rate, less tax 6 Realized and unrealized gain on the asset (after tax) 5 Administrative cost (1) 10 You are required to calculate the expected retum on plan assets of Sofwan Bhd. (8 marks)