Chapter 6 Solutions

6.7 Putus
Capital reduction and reorganisation account
RMm
Accumulated losses
75
Ordinary share capital
Land
75
Ordinary share capital
RMm
64
Ordinary share capital b/d
Cash
8% preference shares
40
Bank borrowing
104

Capital reduction
Bal. c/d

RMm
64
11
75
RMm
80
8
10
6
104

Statement of financial position

(immediately after the reorganisation)
RM000
Issued and paid up capital:
Ordinary shares
Current liabilities:
Taxation
Other payables

RM000
40,000

583
785

1,368
41,368

Non-current assets
30,946
Inventories
Other receivables
Trade receivables
Bank

2,150
1,253
3,175
3,844

10,422
41,368

6.10 Jigsaw
Land
Plant
Motor vehicles
Goodwill
Inventories
Receivables
Bank
Profit and loss

Capital reduction and reorganisation account

RM000
100,000
Scramble
66,000
Payables
2,480
Preference share holders
27,200
Ordinary share holders
33,400
2,000
200
165,080
396,360

RM000
160,000
3,960
80,000
152,400

396,360

Statement of financial position

Of Scramble
RM000
Authorised capital
Ordinary shares of RM1 each
6% preference shares

1,500,000
200,000

Issued and paid up capital:

Ordinary shares
6% preference shares
Share premium

270,000
80,000
30,000
380,000

Non-current assets
Land and building
Plant and machinery
Motor vehicles
Brand
Current assets
Inventories
Bank
Preliminary expenses

RM000

80,000
48,000
4,000
4,000
24,000
219,600

243,600
379,600
400
380,000