Question 2: The tasks are listed below: (Total 10 marks)

The summarized statement of financial position of Cloud Ltd at a particular point of time is as follows,

Statement of the Financial Position

Particulars Amount in Omani Rial (OMR)

Particulars	Amount in Omani Rial (OMR)
Net Assets Value (Various assets less Liabilities)	857,500
Equity
Share Capital (200,000 shares of OMR 1 each)	250,000
Share premium account	75,000
Revaluation Reserve	92,500
Retained Earnings	170,000
Total Equity	587,500

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 the future. (Marks 4)

Ahmed has 250 equity shares of the aforesaid company before Right and Bonus issue. Now what will be total shareholding of Ahmed after bonus and right issues? What is the total value of Ahmeds share before and post right and bonus issue? (Marks 4)