Question
The following is the statement of financial position of the Generation Bhd as at 30 June 2019: Generation Bhd Statement of Financial Position as at
The following is the statement of financial position of the Generation Bhd as at 30 June 2019:
Generation Bhd | |||||||
Statement of Financial Position as at 30 June 2019 | |||||||
RM | |||||||
Non-current assets | |||||||
Land and building | 15,000,000 | ||||||
Investment | 4,000,000 | ||||||
Current asset | |||||||
Other current assets | 3,013,600 | ||||||
Bank | 4,200,000 | ||||||
26,213,600 | |||||||
Issued and paid-up capital | |||||||
4,000,000 ordinary shares | 8,000,000 | ||||||
Reserves | |||||||
Retained earnings | 6,953,600 | ||||||
17,453,600 | |||||||
Non-current liabilities | |||||||
7 million 5% Redeemable Preference Shares | 10,500,000 | ||||||
10% debentures | 760,000 | ||||||
26,213,600 | |||||||
The directors decided on the following matters:
- The company decided to redeem half of 5% Redeemable Preference Shares.
- In order to finance the redemption, the company decided to issue 2,000,000 unit of ordinary shares at RM2.
3. To dispose half (1/2) of the investments at a profit of RM200,000.
Required: Journalize the above transactions. (7 marks)
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