Exercise $10-4($Conversion of Preference Shares into Ordinary Shares$)$

The Jazam Company has $50,000$ shares of convertible preference share capital, par value P$50$ and $100,000$ shares of P$10$ par ordinary share capital. The preference shares were originally issued at P$75.$

On September $6,2014,$ three thousand $(3,000)$ preference shares were converted into ordinary shares.

Instructions:

Record the conversion of preference shares into ordinary shares assuming:

a$.$ Each preference share is converted into $4$ ordinary shares

b Each preference share is converted into $10$ ordinary shares

c$.$ Each preference share is converted into $8$ ordinary shares

State the number of issued and outstanding preference shares and ordinary shares for each of the three assumptions.