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You are required to prepare the journal entries to record the above transactions.

You are required to prepare the journal entries to record the above transactions.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Part B Given below is the statement of financial position of PQR Bhd as at 31 December 2015. Statement of Financial Position of PQR Bhd as at 31 December 2015 RM Non-current assets Current assets (except cash at bank) Cash at bank NIK/GAN BAC1634 page 3 of 6 FINANCIAL ACCOUNTING AND REPORTING I Issued share capital 40,000,000 Ordinary shares of RM1 each Share premium Retained profits Non-current liability 20,000,000 6% redeemable preference shares Current liabilities 70,000,000 15,000,000 50.000.000 135.000.000 Continued... March 2016 40,000,000 4,000,000 50,000,000 24,000,000 17,000,000 135,000,000 PQR redeemed all the preference shares at a premium of 20 percent on 31 December 2015. It issued 10 million ordinary shares at RM3 per share to facilitate the redemption and the balance through profits available for dividends. Required: You are required to prepare the journal entries to record the above transactions.
Transcribed Image Text:Part B Given below is the statement of financial position of PQR Bhd as at 31 December 2015. Statement of Financial Position of PQR Bhd as at 31 December 2015 RM Non-current assets Current assets (except cash at bank) Cash at bank NIK/GAN BAC1634 page 3 of 6 FINANCIAL ACCOUNTING AND REPORTING I Issued share capital 40,000,000 Ordinary shares of RM1 each Share premium Retained profits Non-current liability 20,000,000 6% redeemable preference shares Current liabilities 70,000,000 15,000,000 50.000.000 135.000.000 Continued... March 2016 40,000,000 4,000,000 50,000,000 24,000,000 17,000,000 135,000,000 PQR redeemed all the preference shares at a premium of 20 percent on 31 December 2015. It issued 10 million ordinary shares at RM3 per share to facilitate the redemption and the balance through profits available for dividends. Required: You are required to prepare the journal entries to record the above transactions.
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