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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

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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 Amount in Omani Rial (OMR) Particulars Net Assets Value (Various assets less Liabilities) Amount in Omani Rial (OMR) 587,500 Equity Share Capital (200,000 shares of 250,000 OMR 1 each) 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 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)

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