The following balances are extracted from Piyal Plc as at 31st March 2020. Stated capital Ordinary shares issued at LKR 100 each 6 00 000, Preference shares issued at LKR 50 each 3 00 000, Reserves General reserve 1 80 000 Profit or loss account 3 80 000 Investment 1 00 000 Cash 85 000 On 15th April 2020 LKR150 000 preference shares were redeemed at 10% premium. For this purpose 1000 ordinary shares were issued at 110 each. Company received 1500 applications and allotment was made, then excess applications were rejected. Investment costing LKR 60 000 was sold to LKR 80 000. On 20th April 2020, company s issued a three (03) shares for every five (05) shares held using profit.

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