DEC 2018

DEBIT CREDIT
5% redeemable preference share 3,000,000
Redemption of preference share 3,000,000

Redemption of preference share 3,000,000

Bank 3,000,000

Issue:
Bank (400kx2.30) 920,000
Application of ordinary share 920,000

Application of ordinary share 920,000

Ordinary share capital 920,000

Bonus issue:
Retained profit (1/20 X 5m x 2) 500,000
Bonus issue 500,000

Bonus issue 500,000

Ordinary share 500,000

Out of Profit (3m – 920k)

Retained profit 2,080,000
Ordinary share capital 2,080,000