WorksheetsRedemption of Preference Shares_1
Total questions: 5
Worksheet time: 25mins
Determine the value for the shares redeemed
RM50,000,000
RM25,000,000
RM12,500,000
Identify the correct journal entries for the payment of shares redeemed
DEBIT Redemption of preference shares a/c and CREDIT Bank a/c by RM12,500,000
DEBIT Bank a/c and CREDIT Redemption of preference shares a/c by RM12,500,000
None of the above
How much is the amount of ordinary shares issued to maintain the capital structure?
RM12,500,000
RM25,000,000
RM50,000,000
Determine the balance of redeemable preference shares (RPSC) and the ordinary shares (OSC) capital as at 31 December 20x6 respectively.
RPSC: RM50,000,000 ;
OSC: RM460,000,000
RPSC: RM37,500,000 ;
OSC: RM472,500,000
RPSC: NIL ;
OSC: RM510,000,000
Redemption through fresh issue of shares allows company to issue of ordinary shares, preference shares and bonus shares to the amount of shares redeemed.
TRUE
FALSE
