Question 2\ Brave Was Incorporated on 1 April 2017. For the financial year ended 31 March 2018, the company had outstanding 100,000 units cumulative preference shares

6%

at price RM2.50 per unit and 400,000 unit equity shares at RM1.80 per unit. The company also record retained earning amounting RM300,000.\ During financial year ended 31 March 2019, the following transactions occurred:\ 2 April 2018 Issued 200,000 unit equity shares for RM1.40 per shares for cash.\ 13 May 2018 Issued 60,000 unit preferred share

6%

for a piece of land. The market price of the shares is RM2.60 per shares and the fair value of the land is RM180,000.\ 4 June 2018 Declared cash dividend RM150,000 to all shareholders as per record on 31 May 2018.\ 30 Oct 2018 Paid dividend declared on 4 June 2018.\ 2 Jan 2019 Split equity shares 1:2\ 25 Feb 2019 Issued 300,000 units equity shares at RM1.30 per shares for cash.\ 10 Mar 2019 Issued 40,000 units preferred shares 6% at RM2.50 for cash.\ On 31 Mar 2019, it was recorded that net profit for the company was RM550,000.

Brave Was Incorporated on 1 April 2017. For the financial year ended 31 March 2018, the company had outstanding 100,000 units cumulative preference shares 6% at price RM2.50 per unit and 400,000 unit equity shares at RM1.80 per unit. The company also record retained earning amounting RM300,000. During financial year ended 31 March 2019, the following transactions occurred: 2 April 2018 Issued 200,000 unit equity shares for RM1.40 per shares for cash. 13 May 2018 Issued 60,000 unit preferred share 6% for a piece of land. The market price of the shares is RM2.60 per shares and the fair value of the land is RM180,000. 4 June 2018 Declared cash dividend RM150,000 to all shareholders as per record on 31 May 2018. 30 Oct 2018 Paid dividend declared on 4 June 2018. 2 Jan 2019 Split equity shares 1:2 25 Feb 2019 Issued 300,000 units equity shares at RM1.30 per shares for cash. 10 Mar 2019 Issued 40,000 units preferred shares 6\% at RM2.50 for cash. On 31 Mar 2019, it was recorded that net profit for the company was RM550,000