Question 3 The statement of financial position of Dana Bhd as at 31 December 2021. RM'000 Research and development 120,000 Furniture and fixtures 640,000 Metor vehiclos 100 00
Question 3 The statement of financial position of Dana Bhd as at 31 December 2021. RM'000 Research and development 120,000 Furniture and fixtures 640,000 Metor vehiclos 100 00
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 17E
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![Question 3
The statement of financial position of Dana Bhd as at 31 December 2021.
RM'000
Research and development
120,000
Furniture and fixtures
640,000
Motor vehicles
100,000
Inventories
50,000
Trade receivables
30,000
Prepayments
10.000
950,000
500,000 ordinary shares
1,000,000
Accumulated losses
(200,000)
10% Debentures
100,000
Trade payables
50.000
950,000
Dana Berhad had been incurring trading losses for a number of years and was unable to pay dividends for a
number of years. The company decided to undertake a scheme of capital reduction.
The company passed a special resolution and the approval of the court was obtained to the following scheme
of reconstruction:
1. The ordinary shares are to be reduced to 1.25 sen per share, fully paid up.
2. Assets are revalued to the following values.
RM'000
Furniture and fixtures
620,000
Motor vehicles
65.000
Inventories
50,000
3. Research and development are to be written off.
4. The accumulated losses and all intangibles assert are to be written off.
Required:
(a) Prepare the Capital Reduction T-Account.
(b) Prepare the Statement of Financial Position of Dana Bhd after the Re-organization.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F282603da-1a76-4216-8377-a8cacdc47525%2F8d853145-ee76-4f8c-aa22-0085939d5890%2Fss3fxi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
The statement of financial position of Dana Bhd as at 31 December 2021.
RM'000
Research and development
120,000
Furniture and fixtures
640,000
Motor vehicles
100,000
Inventories
50,000
Trade receivables
30,000
Prepayments
10.000
950,000
500,000 ordinary shares
1,000,000
Accumulated losses
(200,000)
10% Debentures
100,000
Trade payables
50.000
950,000
Dana Berhad had been incurring trading losses for a number of years and was unable to pay dividends for a
number of years. The company decided to undertake a scheme of capital reduction.
The company passed a special resolution and the approval of the court was obtained to the following scheme
of reconstruction:
1. The ordinary shares are to be reduced to 1.25 sen per share, fully paid up.
2. Assets are revalued to the following values.
RM'000
Furniture and fixtures
620,000
Motor vehicles
65.000
Inventories
50,000
3. Research and development are to be written off.
4. The accumulated losses and all intangibles assert are to be written off.
Required:
(a) Prepare the Capital Reduction T-Account.
(b) Prepare the Statement of Financial Position of Dana Bhd after the Re-organization.
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