a) Explain two fundamental qualitative characteristics that make information provided in financial statements useful to users of financial information b) The following trial balance was extracted from the books of Fast Freight Services Limited (FFSL) for the year ended 31 December, 2019 Debit Shs '000' Credit Shs '000' Share capital 556,000 Cash and bank 14,500 Revenue 453,800 Motor vehicles 654,000 Furniture and fittings 10,400 Fuel, tyres, repairs and maintenance 397,000 Accumulated depreciation Motor vehicles 130,800 Furniture and fittings 520 Salary and wages 120,000 Rent 36,000 Utilities and insurance premium 72,120 Provision for bad debts 5,600 3 year, 21 bank loan (obtained on 1 December 2019) 180,000 Debtors 32,000 Creditors 9,300 1,336,020 1,336,020 Additional information Invoices worth Shs 56 million issued to customers on 15 December, 2019 had neither been included in the records nor settled Management of FFSL received Shs 74 million from Best Distributors Limited on 15 October, 2019 by cheque This amount related to a debt owed and subsequently written off by management of FFSL in 2018 Management of FFSL passed a resolution to write off Shs 6 5 million in debt and to adjust the provision for doubtful debts to 5 of final trade receivables' balance after all related adjustments had been made Monthly total repayment for the loan obligation for the month of December 2019 was Shs 6,781,500 (Shs 3,150,000 in interest and Shs 3,631,500 as a repayment towards the principle) The amount was reflected in the bank statement but the cash book had not yet been updated The company's depreciation policy is as below Rate per annum Method Motor vehicles 20 Reducing balance Furniture and fittings 5 Straight line Depreciation expense is time apportioned whenever applicable Required Prepare for FFSL, for the year ended 31 December, 2019 A) Journal entries to record the additional information (1) to (5) above B) Statement of profit or loss C) Statement of financial position

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Question: a) Explain two fundamental qualitative characteristics that make information provided in financial statements useful to users of financial information. b) The following trial balance was

a) Explain two fundamental qualitative characteristics that make information provided in financial statements useful to users of financial information.

b) The following trial balance was extracted from the books of Fast Freight Services Limited (FFSL) for the year ended 31 December, 2019.

Debit Shs '000' Credit Shs '000'

Share capital 556,000

Cash and bank 14,500

Revenue 453,800

Motor vehicles 654,000

Furniture and fittings 10,400

Fuel, tyres, repairs and maintenance 397,000

Accumulated depreciation:

Motor vehicles 130,800

Furniture and fittings 520

Salary and wages 120,000

Rent 36,000

Utilities and insurance premium 72,120

Provision for bad debts 5,600

3 year, 21% bank loan

(obtained on 1 December 2019) 180,000

Debtors 32,000

Creditors - 9,300

1,336,020 1,336,020

Additional information:

Invoices worth Shs 56 million issued to customers on 15 December, 2019 had neither been included in the records nor settled.
Management of FFSL received Shs 74 million from Best Distributors Limited on 15 October, 2019 by cheque. This amount related to a debt owed and subsequently written off by management of FFSL in 2018.
Management of FFSL passed a resolution to write off Shs 6.5 million in debt and to adjust the provision for doubtful debts to 5% of final trade receivables' balance after all related adjustments had been made.
Monthly total repayment for the loan obligation for the month of December 2019 was Shs 6,781,500 (Shs 3,150,000 in interest and Shs 3,631,500 as a repayment towards the principle). The amount was reflected in the bank statement but the cash book had not yet been updated.
The company's depreciation policy is as below:

Rate per annum Method

Motor vehicles 20% Reducing balance

Furniture and fittings 5% Straight line

Depreciation expense is time apportioned whenever applicable.

Required:

Prepare for FFSL, for the year ended 31 December, 2019:

A) Journal entries to record the additional information (1) to (5) above .

B) Statement of profit or loss.

C) Statement of financial position.

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