Question No 3: (5+5=10 Marks) (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. CONSISTENCY Answer the following Questions (Imark each) a. Explain the above accounting convention in your own words. b. Discuss any three examples to explain the accounting convention c. What are the basic objectives of this accounting convention? d. How this convention affects the valuation of assets and liabilities? e. How this accounting convention affects the net profit of the business? Case 2. Suppose you are the accountant of Oman Cement Company, there was an opening balance of office supplies OMR 900 on 19 January 2019. On Ist of April 2019, the Company purchased office supplies costing OMR 3600. At the end of the accounting period (on 31st December 2019), the remaining supplies was only OMR 1200. 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