Q1:What are the procedures and stages of establishing companies based on the Bahrain law and policies (review the pdf file uploaded in the Moodle)?

Q2: Suppose that the results of the accounting cycle in 31.12.2022 for one of the joint-stock companies showed a net profit. The company's general assembly approved the distribution of these profits in accordance with the applicable laws and the company's statute and based on the proposal of the company's board of directors. The deduction of 10% and 10% as a Mandatory reserve and a voluntary reserve, respectively. Also, a deducting 5% of the expansion reserve. Further, based on The Companies Law and the Articles of Association, the dividend to shareholders by cash is determined to be 5% based on the capital of 8 million dinars. Moreover, the board of directors remuneration percentage is 10% of the net profit after deductions.

Requirements:

Use your last seven numbers of ID as net profit of the company and answer the following:

1. Preparing the draft distribution account provided by the Board of Directors?
2. Record the entries in the books of the company?
3. Organizing the profit and loss distribution account?

Q3: Sanad Ltd. want to extend their business. So, it issued 600,000 Debentures of BD 100 each at a premium of BD 10 per share. Payable as follows: BD 60 on Application (including BD 10 premium), BD 30 on Allotment and BD 20 on First and Final call. 100,000 of the debentures were applied for and allotted. All the calls were duly received.

Requirement:

1. Change the highlighted number and used the last six numbers of your student ID. Then, make necessary journal entries in the books of the company.