Q.No.1. On January 1st 20x1, HACPL issued 400,000 convertible loan notes for Rs. 100 each with coupon rate of 5.5%. The market rate for an equivalent debt without conversion option is 9.6%. Each loan note is convertible into 6 ordinary shares any time up to the maturity date of December 31st 20x5 after which the loan notes would be redeemed at par. Each ordinary share have a face value of Rs. 10. Required: 1. Pass journal entries to record equity and financial liability portion of the loan notes at the inception date. (5) What amount would be shown in the statement of profit or loss and the statement of financial position for the years ending 20x1 to 20x5