(LOI & LO2) Question 1: The tasks are listed below: (Total 18 marks) Saif and Salim started partnership business in 2015 sharing profit and losses in the ratio of 60% and 40% respectively. The following is the trial balance of the partnership firm, which has been extracted as on 31 December 2020: Salon 25.000 AND The following information is relevant: Closing inventory as on 31/12/2020 is valued at OMR 8000 Provision for bad debts is to be created 8% of Trade Receivables Insurance amount included prepayment for 2020 OMR 500 Salary outstanding (accrual) as on 31/12/2019 is OMR 2,000 Interest on loan given by Salim (partner) is not provided in the partnership agreement. oo The following is provided in the partnership agreement Interest on drawings at 10% per annum Interest on Capital at 8% per annum Salary to Saif OMR 5000 and to Salim OMR 8,000 per You are required to prepare: Income Statement for the year end 31/12/2020 (5 Marks) to Profit and Loss Appropriation Account (Statement of division of Income) for the year end 31/12/2020. Marks) o Partners' Capital Account in columnar form (2 Marks) a Partners' Current Accounts in columnar form, and (3 Marks) (5 Marks) A Statement of Financial Position (Balance Sheet) as at 31/12/2020 Note: you are required to Perform all relevant accounting entries relating to Interest on Capital Account, Interest on Drawings, Salary to partners with regards to preparation of partnership business Question 2: The tasks are listed below: (Total 8 marks) The summarized statement of financial position of Amal Inc. at a particular point of time is as follows, Statement of the Financial Position Particulars Particulars Amount in Omani Rial (OMR) Net Assets Value (Various assets less Liabilities) Equity Amount in Omani Rial (OMR) 587,500 Share Capital (200,000 shares of OMRI each) 250,000 Share premium account 75,000 Revaluation Reserve 92.500 Retained Earnings 170,000 587,500 Total Equity Transaction Without any other transactions occurring at the same time, the company made a one for five rights share issue at OMR 3.75 per share payable in cash. All shareholders took up their rights. Immediately afterwards, the company made a one for two bonus issue. You are required to do the following things: . Define Right Issue and Bonus Issue. How these issues are different from Public Issue. (Marks 2) Show the statement of financial position immediately following the bonus issue, assuming that the directors wanted to retain the maximum dividend payment potential for future. the (Marks 3) . Salma has 250 equity shares of the aforesaid company before Right and Bonus issue. Now what will be total shareholding of Salma after bonus and right issues? What is the total value of Salma's share before and post right and bonus issue? (Marks 3)