Question 2

25 marks) Question 2 Following is the statement of financial position of Kmart Bhd 130 March 2010 Statement of Financial Position of Kmart Bhd as at 30 March 2019 600 000 000 415000,000 Issued share capital 340,000,000 Ordinary shares of RM 2 each Retained oaminga Non-current ability 50,000,000 Redeemable preference Shares, 5% Debentures, 45 125 000 000 20,000,000 Total Equity & Liability 1,240,000,000 825.000.000 200.000.000 Non-current assets Cash at bank Trade debtor Other current assets (except cash at bank) 10,000,000 Total Assets 1.240,000,000 Additional information: 1. On April 2018 Kmart Bhd laud 4 percent debentures of nominal value RM 20 000 000 at a discount of 10 percent The debentures will be redeemed at par value. The effective interest rate la percent and interest date is 30 March 2010 2 Kmart had sued 50,000,000 Rademable Preference Shares 5 percent which were redeemable at a premium of 20 percent on 30 March 2019. The company had amortized the premium payable over the superiod. Kman Bhd has issued 10 million ordinary shares at RM5 per share 10 facilitate the redemption, and the balance through profits available for dividendis 3. On 30 March 2019, Kmart decided 10 buy-back 2,000,000 of its ordinary shares in the open market for RM3.50 each. Required (a) Prepare the journal entries to record the above transactions marks (b) Prepare the statement of Financial Position at 30 March 2019 110 marks) (30 marks]