EXCEL 1

Dr RPS 11,000,000
Cr Preference share redemption account 11,000,000

Dr Preference share redemption account 11,000,000

Cr Bank 11,000,000

Dr Bank 10,000,000
Cr Ordinary Shares 5,000,000
Cr Share Premium 5,000,000

Dr Retained Profit 1,000,000

Cr CRR 1,000,000

Rejoice Bhd.
Statement of Financial Position (extract) as at 31 December x8

Equity
55,000,000 ordinary shares of RM1 fully paid 55,000,000
Share premium 7,000,000
Retained profits 12,000,000
CRR 1,000,000

Non-current liability
5,000,000 5% Redeemable preference shares of RM2 each 10,000,000
85,000,000
Excel 2
a.
Dr Bank 39,000,000
Cr 4% Debenture 39,000,000
Dr 4% Debenture 1,000,000
Cr Bank 1,000,000

Schedule of Interest and Carrying amount of Liability

7.00% 7.0% 4%
Carrying Effective Year-ended liability
Year Amount Interest Rate Interest Paid amount
1 38,000,000.00 2,660,000.00 (1,600,000.00) 39,060,000.00
2 39,060,000.00 2,734,200.00 (1,600,000.00) 40,194,200.00
3 40,194,200.00 2,813,594.00 (1,600,000.00) 41,407,794.00
4 41,407,794.00 2,898,545.58 (1,600,000.00) 42,706,339.58
5 42,706,339.58 2,989,443.77 (1,600,000.00) 44,095,783.35
The liability would be redeemed at 44,100,000 which is close to 44,095,783.35 due to rounded
effective interest rate. This number is the nominal value of liability plus 10.25% premium.

Statement of Profit & Loss

Year 1 Year 2 Year 3 Year 4 Year 5
Finance Cost 2,660,000 2,734,200 2,813,594 2,898,546 2,989,444

SOFP Year 1 Year 2 Year 3 Year 4 Year 5

Non-current
Liabilities

4% Debentures 39,060,000 40,194,200 41,407,794 42,706,340 44,095,783

b.
Dr Bank 39,000,000
Cr 4% Debenture 39,000,000
Dr Finance Cost - expenses 1,000,000
Cr Bank 1,000,000
Statement of P&L

Expenses Year 1 Year 2 Year 3 Year 4 Year 5

Issue Cost 1,000,000
Finance Cost/Interest
Expenses 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000
 Change in Fair Value 1,000,000 2,000,000 2,800,000 (300,000) 500,000
SOFP Year 1 Year 2 Year 3 Year 4 Year 5
Non-current
Liabilities

4% Debentures 40,000,000 42,000,000 44,800,000 44,500,000 45,000,000

Excel 3

8% 12%
Year Description Interest Rate Discounted Rate Amount
1 Interest 640,000.00 89% 569,600
2 Interest 640,000.00 80% 512,000
3 Interest 640,000.00 71% 454,400
4 Interest 640,000.00 64% 409,600
4 Loan 8,000,000.00 64% 5,120,000

Total Liability Component 7,065,600

Proceeds 8,000,000
Equity Component 934,400

Schedule of Interest and Carrying amount of Liability

12.94% 12.0% 8%
Carrying Effective Year-ended liability
Year Amount Interest Rate Interest Paid amount
1 7,065,600.00 847,872.00 (640,000.00) 7,273,472.00
2 7,273,472.00 872,816.64 (640,000.00) 7,506,288.64
3 7,506,288.64 900,754.64 (640,000.00) 7,767,043.28
4 7,767,043.28 932,045.19 (640,000.00) 8,059,088.47

Beginning of Year 1
Dr Bank 8,000,000
Cr 8% Convertible Loan Stock 7,065,600
Cr Equity Component 934,400
End of Year 1
Dr Interest Expense 847,872
Cr Bank 640,000
CR 8% Convertible loan stock 7,273,472
End of Final Year
Dr 8% Convertible Loan 8,000,000
Dr Equity Component 934,400
 Cr Share Capital (8m/100 x 50) 4,000,000
Share Premium 4,934,400
Excel 4
Dr 5% RPS (5M x (100%+50%) 75,000,000
Cr Bank 75,000,000

Dr Bank (25m x 3) 75,000,000

Cr Ordinary Shares (25m x 1) 25,000,000
Cr Share Premium 50,000,000

SOFP of BBB at 30 June x14

Non-current Asset 170,000,000
Current Asset (Except cash at Bank) 115,000,000
Cash at Bank 150,000,000
435,000,000
Issued Share Capital 125,000,000 125,000,000
ordinary shares of RM1 each
Share Premium 170,000,000
Retained Profit 120,000,000
Current Liabilities 20,000,000
435,000,000

Excel 5
Dr 5% RPS (5M x (100%+50%) 75,000,000
Cr Bank 75,000,000

Dr Retained Profit 75,000,000

Cr CRR 75,000,000

SOFP of BBB at 30 June x14

Non-current Asset 170,000,000
Current Asset (Except cash at Bank) 115,000,000
Cash at Bank 75,000,000
360,000,000
Issued Share Capital 100,000,000 100,000,000
ordinary shares of RM1 each
Share Premium 120,000,000
Retained Profit 45,000,000
CRR 75,000,000
Current Liabilities 20,000,000
360,000,000
Excel 6
Dr 5% RPS (5M x (100%+50%) 75,000,000
Cr Bank 75,000,000
Dr Bank (10m x 3) 30,000,000
Cr Ordinary Shares (10m x 1) 10,000,000
Cr Share Premium 20,000,000

Dr Retained Profit 45,000,000

Cr CRR 45,000,000

SOFP of BBB at 30 June x14

Non-current Asset 170,000,000
Current Asset (Except cash at Bank) 115,000,000
Cash at Bank 105,000,000
390,000,000
Issued Share Capital 110,000,000 110,000,000
ordinary shares of RM1 each
Share Premium 140,000,000
Retained Profit 75,000,000
CRR 45,000,000
Current Liabilities 20,000,000
390,000,000