Adjustments: 1 Stock on hand on 31st March, 2019 was valued at OMR 80,000. 2) Accrued expenses: Salaries OMR 3,000, Wages OMR 2,400. 3) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a. 4) Provision for Bad and doubtful debts at 5% on Sundry Debtors. 5) Legal charges paid in advance paid in advance OMR 1,200. 6. The following were agreed upon: a) Deyah is entitled to a salary of OMR 1,000 per month. b) Interest on capital is 5% p.a. c) Commission of 4% p.a.on profit before interest on capital and salaries. B. Admission of a New Partner (2 marks) 1. Explain the treatment of goodwill at the time of the admission of a new partner. 2. Why and how new partner is admitted in partnership business? A. From the following Trial Balance of Deyah, Duaa and Shahad, you are required to prepare the following after taking into account the additional information: a) Adjusting Entries (2.5 marks) b) Income Statement for the year ended March 31, 2019 (2.5) c) Profit and Loss Appropriation Account (3.0) d) Partners' Current Accounts (2.5) e) Balance Sheet (2.5) Trial Balance as on 31st March, 2019 Amt. 80,000 80,000 80,000 2.500 2,500 103.000 60,000 308,000 Debit Balance Current Ne-Deyah Opening stock Purchases Wages Salaries Omice expenses Bank charges Legal charges Machinery Land and Building Interest Export duty Bad debts Sundry Debtors Travelling Expenses Electricity charges Furniture Equipment Amt. Credit Balance 4,000 Capital Nc Deyah 88.000 Duan 1.76,000 Shahad 23.500 Current Ne- Shahad 15,000 Current A/c- Duaa 8.000 Sundry Creditors 2.600 Bank overdraft 3,000 Sales 90,000 130,000 3.600 3,800 4.000 82.000 3.200 2.300 37,000 40.000 716,000 716,000