(a). Randa Randa Ltd prepare accounts to 31 December each year. On 1 January 2018, the company acquired an asset by means of a finance lease. Details of the lease agreement are as follows: Cash price of leased asset shs 30, 500 Lease term 5 years Payments due annually in advance shs 7, 600 each Useful life of asset 6.5 years Residual value shs 5, 000 Rate of interest implicit in lease 12% per annum Randa Randa Ltd will obtain legal ownership of the asset at the end of the lease term. The company calculates depreciation on the straight-line basis. Assuming that the actuarial method is used to allocate the finance over the lease term