Question 1: part 1:

Cantik Bhd is authorised to issue 50,000,000 shares of ordinary share. During 2019, Cantik Bhd took part in the following selected transactions:

1. Issued 5,000,000 shares at RM15 per share, less costs related to the issuance of the share totalling RM50,000.

2. Issued 100,000 shares for land appraised at RM1,500,000. The share was actively traded on a national stock exchange at approximately RM20 per share on the date of issuance.

3. Purchased 500,000 shares of treasury shares at RM13 per share. The treasury shares purchased were issued in 2018 at RM 11 per share. (Use cost method)

Required:

journal entries for the above transactions of Cantik Bhd.

Part 2 :

Non-profit organisations do not trade in goods or provide services with a profit motive. Hence this type of organisation does not have to keep any accounting records. Prepare a brief note to debate this statement.