Question 19:

The balance sheet of TT Ltd showed the following figures on 31 March 2017
Non-current assets 175 000
Current Assets: Bank 100 000
Total 275 000
Authorized Capital: 50 000 Ordinary shares of P5 each 250 000
5 000 6% Preference shares of P5 each 25 000
Issued, called up and paid up capital : 30 000 Ordinary shares of P5 each 150 000
5 000 6% Preference shares of P5 each 25 000
Share Premium 50 000
Distributable profits 50 000
Total 275 000
On 1 April the company redeemed all the 5000 preference shares at par. No new issue of shares
were made for this purpose. On the same date, the company made a bonus share issue to existing
ordinary shareholders at the rate of 1 (one) fully paid ordinary share for every 15 ordinary shares
held by existing shareholders. The company used the share premium amount for this purpose.
Required: Prepare necessary ledger accounts to record the above transactions.

Question 20:
The balance sheet of TT Ltd showed the following figures on 30 June 2017
Non-current assets 300 000
Current Assets: Bank 100 000
Total 400 000
Authorized Capital: 75 000 Ordinary shares of P5 each 275 000
5 000 6% Preference shares of P10 each 50 000
Issued, called up and paid up capital : 50 000 Ordinary shares of P5 each 250 000
5 000 6% Preference shares of P10 each 50 000
Share Premium 40 000
Distributable profits 60 000
Total 400 000
On 1 July the company redeemed all the 5000 preference shares at a premium of 5%. These
preference shares were originally issued at par. To raise partial funds, the company issued 5 000
ordinary shares of P5 each at par and the amount was received in full in one instalment. On 1
August, the company made a bonus share issue to existing ordinary shareholders at the rate of 3
(three) fully paid ordinary share for every 55 ordinary shares held by existing shareholders. The
company used the share premium amount for this purpose. Required: Prepare necessary ledger
accounts to record the above transactions.
Question 21: The balance sheet of ZZ Ltd showed the following figures on 30 April 2017
Non-current assets 500 000
Current Assets: Bank 80 000
Total 580 000
Authorized Capital: 40 000 Ordinary shares of P10 each 400 000
10 000 8% Preference shares of P5 each 50 000
Issued, called up and paid up capital : 35 000 Ordinary shares of P10 each 350 000
10 000 8% Preference shares of P5 each 50 000
Share Premium 100 000
Distributable profits 80 000
Total 580 000
On 1 June the company redeemed all the 10 000 preference shares at a premium of 5%. These
preference shares were originally issued at a premium of 5%. To raise partial funds, the company
issued 3 000 ordinary shares of P10 each at par and the amount was received in full in one
instalment. On 1 July, the company made a bonus share issue to existing ordinary shareholders
at the rate of 2 (two) fully paid ordinary share for every 38 ordinary shares held by existing
shareholders. The company used the share premium amount for this purpose. Required: Prepare
necessary ledger accounts to record the above transactions.

Question 22: The balance sheet of ABC Ltd showed the following figures as at 31 March 2017
Non-current assets 480 000
Current Assets: Bank 120 000
Total 600 000
Authorized Capital: 100 000 Ordinary shares of P5 each 500 000
20 000 5% Preference shares of P5 each 100 000
Issued, called up and paid up capital : 60 000 Ordinary shares of P5 each 300 000
20 000 5% Preference shares of P5 each 100 000
Share Premium 150 000
Distributable profits 50 000
Total 600 000
On 1 April the company made a bonus share issue to existing ordinary shareholders at the rate
of 5 (five) fully paid ordinary share for every 30 ordinary shares held by existing shareholders.
The company used the share premium amount for this purpose.
On 1 June the company redeemed all the 20 000 preference shares at a premium of 5%. These
preference shares were originally issued at a premium of 5%. To raise partial funds, the company
made a rights issue of 10 ordinary shares for every 70 shares held by existing ordinary
shareholders The rights shares were issued at par and the amount was received in full from
existing shareholders.
Required: Prepare necessary ledger accounts to record the above transactions.