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QUESTION 1 : ClipTech Bhd was incorporated with share capital of RM 2 , 0 0 0 , 0 0 0 in 2 0 2
QUESTION :
ClipTech Bhd was incorporated with share capital of RM in The following
balances were extracted from the book of ClipTech Bhd as at June :
The following transaction took place during the year ended June and :
i On August the company issued ordinary shares at a price of RM
each fully paid upon application. The ordinary shares were oversubscribed by
Any oversubscribed shares were refunded immediately.
ii On January the directors offered to the public preference shares
at RM per shares. The issued shares were fully subscribed and paid.
iii On July the company decided made a rights issue of share on the basis of one
new ordinary share for every twenty existing ordinary shares held at the share price of
RM
iv On February the company decided to redeem all the redeemable preference
share. This amount will be redeem partly by issue ordinary shares at RM and
partly out of profits.
iv On June the company decided to issue a bonus share on the basis of one new
ordinary share for every ten existing ordinary shares held in the year The share
price of the equity share was RM
v The current year net profit and loss for year ended and was RMdebit
balance and RMcredit balance respectively.
You are required to prepare:
a Journal entry to record the above transactions
b Record the above transactions in the ledger accounts of Cold Bhd as follow:
i Bank account.
ii Ordinary shares account
iii. Preference shares account
iii. Retained profit account
iv Asset revaluation account
c Prepare an Extract of Statement of Financial Position as at June and
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