Question 5 Red Bhd. declared a bonus of one share for every four held. The share premium was to be utilised for the bonus, and if the share premium was insufficient then the retained profits was to be utilised for the bonus issue. Red Bhd.'s SoFP (Extract) RM Equity: 600,000 ordinary shares of RM1 each Share Premium 600,000 20,000 Retained Profits Required: 180,000 800,000 (b) Show the journal entries to record the bonus issue and an extract of the SoFP after the bonus issue. (d) (9 marks) Briefly discuss the nature of a reserve. How do reserves differ from the other main components of equity? (4 marks)