a) The IASB Conceptual Framework describes the fundamental qualitative characteristics of useful financial information.

Required:
State and explain the TWO (2) fundamental qualitative characteristics. (10 marks)

b) Kofi Mensah started a furniture business on January 1, 2018, and undertook the following transactions during the year:

• On 1/1/18, he paid GH¢150,000 into the business.
• On 4/1/18, he borrowed GH¢150,000 from Ama.
• He paid GH¢200,000 on 6/1/18 for one room to be used as a small shop for his furniture business.
• Kofi Mensah bought furniture costing GH¢80,000 on 8/1/18, which he plans to sell.
• On 10/1/18, he bought furniture for resale from Kwame for GH¢150,000 agreeing to pay for them within 15 days.
• Kofi Mensah sold furniture which had cost GH¢60,000 for GH¢90,000 on 12/1/18.
• Furniture worth GH¢110,000 was sold for GH¢180,000 to AA Ltd on credit on 20/1/18.
• On 24/1/18 Kwame was paid GH¢90,000.
• On 28/1/18 AA Ltd paid GH¢80,000 of the amount he owed.

Note: All monies paid and received were through the bank account.

Required:
Post the above transactions to the following ledgers in the books of Kofi Mensah:
i) Bank account (3 marks)
ii) Inventory account (2 marks)
iii) Capital account (1 mark)
iv) Kwame account (2 marks)
v) AA Ltd account (2 marks)