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 5 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.