a) Sims limited issued a 8% K350 million convertible debt on 1/1/2016 for a three year period. The bond is redeemable in the third year. The effective interest rate is 10%. You are required to explain and show how the above instrument should be accounted for in the books of Sims Limited for the years 2016 to 2018. The year end is 31/12. It is recommended to show the profit and loss account and statement of financial position extracts for each of the years (6 marks) b) Tuku limited issued a 5% K70 million bond on 1/1/2018. The bond attract an issue costs of 10% as well as discount of 2%. The effective interest rate is 8%.