as The statement of financial position extract of Nest Bhd. as at 31 March 2019 RM Capital and Reserves 480,000 Ordinary shares Reserves Retained earnings 50,000 30,000 General reserve The paid up capital of Nest Bhd. consists of 400,000 ordinary shares. ffor of rights issue at a price of RM1.
as The statement of financial position extract of Nest Bhd. as at 31 March 2019 RM Capital and Reserves 480,000 Ordinary shares Reserves Retained earnings 50,000 30,000 General reserve The paid up capital of Nest Bhd. consists of 400,000 ordinary shares. ffor of rights issue at a price of RM1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I want hand write answer, do in accounting format not calculation, thanks
Transcribed Image Text:(c) The statement of financial position extract of Nest Bhd. as at 31 March 2019 is as follows:
RM
Capital and Reserves
Ordinary shares
480,000
Reserves
Retained earnings
50,000
General reserve
30,000
The paid up capital of Nest Bhd. consists of 400,000 ordinary shares.
During the year ended 31 March 2019, Nest Bhd. made an offer of rights issue at a price of RM1.20
to all its existing shareholders at the rate of 1 new share for every 4 shares held. The market price
of the shares before the rights issue was RM1.50 each.
All shareholders took up the rights issue, but the rights issue has not been reflected in the books of
Nest Bhd.
Required:
Prepare the journal entries to account for the rights issue with appropriate narrations.
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