Lily Bhd's issued share capital consisted of 45,000,000 ordinary shares paid up to RM1 each. The...

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Lily Bhd's issued share capital consisted of 45,000,000 ordinary shares paid up to RM1 each. The directors decided to take the company private and purchased 2,000,000 of its ordinary shares from the open market at a price of RM1.50 each on 31 December 2021. The retained profits as on that date was RM24,000,000. Lily decided to cancel the shares purchased back. Required: Show the journal entries to show effect the above transaction and prepare an extract from the statement of financial position after the purchase is completed. Lily Bhd's issued share capital consisted of 45,000,000 ordinary shares paid up to RM1 each. The directors decided to take the company private and purchased 2,000,000 of its ordinary shares from the open market at a price of RM1.50 each on 31 December 2021. The retained profits as on that date was RM24,000,000. Lily decided to cancel the shares purchased back. Required: Show the journal entries to show effect the above transaction and prepare an extract from the statement of financial position after the purchase is completed.

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To record the transaction of Lily Bhd purchasing and canceling its own shares the following journal ... View the full answer