(Objectives of this case study) To understand the application of accounting principles in recording of financial transactions To analyze the treatment of adjustment entries in the preparation of final accounts Case 1. The image given below shows one of the basic principles of accounting. Identify the concept related and answer the following questions in your own words. Businessman Capital Business Answer the following Questions ( 1 Mark Each) a. Identify the accounting assumption depicted by the above image. b. Explain the above accounting concept in your own words. c. Discuss any three examples to explain the accounting concept. d. State any two important objectives of this accounting convention. e. How this accounting convention affects the assets and liabilities of the business? Case 2. Suppose you are the accountant of Desert Trading Company LLC. Due to complete lock down and the threat of COVID 19 the employees have done the works at their homes, but they have not yet been paid for the month of April 2019. As per the discussion, they agreed the salary to be paid in January 2021. The amount of the unpaid salaries totals OMR 25,000. How would you deal with this amount in financial statements of 2020? Answer the following Questions (1 Mark Each) a. Name the adjusting entry related to this transaction and pass entry to record the transaction? b. How will you define this adjusting entry in a single sentence? c. Which accounting concept is most applicable to this adjusting entry? d. How this amount is to be shown in balance sheet/ Income statement? e. How it will affect the financial statements if this entry is not passed