Q1. The accounting framework provides financial information such as numerical and nonnumerical. State the qualitative characteristics of financial information with practical

Examples. (6 marks)

Q2. From the following simple transactions, you are to prepare the purchases day book, post the book to the ledger and extract a small trial balance as at 31 January 2005 to find the total of the credit side of the trial balance:

2005

Jan. 3. Credit purchases from: B Zimba K580 000; J Phiri K360 000.

Jan 18. Bought goods on credit from: C Banda K900 000 less 10% trade discount.

Jan 26. Bought goods on credit from: D Soko K600 000 and B Zimba K800 000 less 10%

trade discount. (4 Marks)

Q3. Briefly outline accounting standards IAS 1, IAS 2 and IFRS 15 with examples. (6 Marks)

Q4.The general manager and the operations director of Chabwino Contractors Limited acquired equipment on 1 April 2002 on a Finance Lease.

The Finance lease terms are:

-Lease for a 10 year period

-Each annual rental is K44, 000

-Rentals paid annually in areas on 31 March

-Original cost of the equipment was K248, 610

-The interest rate implicit in the lease is 12% per year

Required:

Calculate the amounts in respect of this finance lease that would be included in Chabwino Contractors Limited financial reports.

1. Statement of comprehensive income for the year ended 31 March 2003
2. Statement of Financial Position as at 31 March 2003
3. Statement of cash flows for the year ended 31March 2003

(9 Marks)