Question Capital Reduction for Langit Bhd

a) Show all the journal entries to record the below transactions (in the notes part) for Langit Bhd.

b) Prepare the Capital Reduction Account

The summarised Statement of Financial Position of Langit Berhad as at 31 October 2016 was as follows: RM RM Non-current Assets Freehold Property Plant and quipment Goodwill Investments 500,000 285,000 100,000 70,000 955,000 Current Assets Inventory Trade Receivables Prepayments 470,000 380,000 45,000 895,000 1,850,000 Equity and Liabilities 800,000 Ordinary Shares, RMl each 400,000 15% Preference Shares, RM1 each Accumulated loss 800,000 400,000 (510,000) 690,000 Non-current Liabilities 10% Debentures 450,000 Current Liabilities Accrued Interest Bank Overdraft Trade Payables Directors' Loan 45,000 115,000 350,000 200,000 710,000 1,850,000