Given below is the balance sheet of Melon Bhd as at 31^st December.

Authorized shares capital
	70,000,000 ordinary shares of RM1 each					70,000,000
	50,000,000 6% redeemable preference shares of RM1 each					50,000,000
Issued and fully paid-up shares capital
	50,000,000 ordinary shares of RM1 each					50,000,000
Reserves
	Retained Earning					70,000,000
Non- current liability
	40,000,000 5% redeemable preference shares of RM1 each					40,000,000
Current liability						18,000,000

The directors resolved to redeem all the redeemable preference shares at a premium of 8% and to make a fresh issue of 40,000,000 ordinary shares of RM1 each at par for the purpose of redeeming the preference shares. All the new shares were fully paid up

Required:

1. Prepare all the necessary journal entries to record the transactions above on the case of redemption by issue of new shares.
2. Prepare Statement of Financial Position (Extract) for the year ended 31 December 2020.

Question 2

Following is the balance sheet of Helsey Bhd as at 31^st December.

Authorized shares capital
	100,000,000 ordinary shares of RM1 each					100,000,000
	70,000,000 7% redeemable preference shares of RM1 each					70,000,000
Issued and fully paid-up shares capital
	80,000,000 ordinary shares of RM1 each					80,000,000
Reserves
	Retained Earning					100,000,000
Non- current liability
	50,000,000 7% redeemable preference shares of RM1 each					50,000,000

All the redeemable preference shares were redeemed at a premium of 10% out of profits.

Required:

1. Prepare journal entries to record all the transactions above.
2. Prepare Statement of Financial Position (extract) immediately after the redemption.

Question 3

Based on Question 3, prepare journal entries to record all the transaction above in the case of redemption partly by issuing of new shares and partly by out of profit.