QUESTION ONE A) The following is the trial balance of J. Higer on 30th September 2019.

$ $

Freehold land and buildings 5500 Plant and machinery 2675 Inventory, 31 march 2019 8345 Sales 41567 Purchases 25467 Carriage 945 Wages 2454 Bad debts 450 Provision for bad debts 1350 Receivables 10891 Payables 4908 Discounts 1647 1476 Furniture 384 Capital J. Higer 19972 General expenses 2676 Bank 3749 Rates 375 Drawings J. Higer 3715

69273 69273

The inventory at 30th September 2019 was $8840. Depreciation on plant and machinery to be provided for at the rate of 10% p.a. Provide 5 per cent on Debtors for further Bad and doubtful debts. The value of unexpired insurance is $126. The rates for the year are $1000, the trial balance figure being the actual cash paid. Prepare the Trading and Profit and Loss Account (in T format) for the six months to 30 September 2019, and a Statement of financial position as at that date.

B) According to the conceptual framework of Accounting; the attributes that make the information provided in the financial statements useful to the user are referred to as qualitative characteristics. There are four of them. Briefly define each one of them and use bullet points to expand on them. (Essays are not required) (25 marks)