The equity of DSF (Don’t simply follow) consists of the following components as at 1

January 2019:

RM’000
30 000 000 ordinary share capital 90 000
Retained earnings 30 500
General reserves 16 000
Revaluation reserves 10 000

The following events related to the equity components occurred in 2019:

Date Events
30 January Issued no-par value bonus shares at RM2.00 per share, at a ratio of
one for every six shares held utilising the general reserves and
retained earnings equally.
15 April Paid dividend payable for 2018 amounting RM3.0 million which
has been approved during the annual general meeting on 31 March
2019.
31 July Due economic crisis the market price of the company has decreased
significantly. A share buyback plan was approved by the board of
directors to counter the problem. A total of 5 million shares at an
average price of RM1.00 were bought back and being retained as
treasury shares. The share buy-back will fully utilise the ordinary
share capital account.
31 August Revaluation of company’s freehold land resulted in a revaluation
surplus of RM1 million.
30 November The company performance and financial position have been
gradually improved therefore, 50% of the shares bought back on 31
May were sold back with the average selling price of RM1.30 per
share.

(a) Prepare the journal entries for the events above (except for the net profit after
tax).
 (12 marks)

https://www.pwc.com/my/en/services/assurance/mfrs/revenue-mfrs15.html