1..1 The format recommended by the International Financial Reporting Standards for the preparation of a statement of profit or loss and other comprehensive income calculates and shows the "gross profit" and the "profit for the year". Write a brief description and explanation of these two terms. Also discuss whether you think the "profit for the year" can be greater than the "gross profit". Provide reasons for your answer.(5Marks)

1.2 The conceptual framework is the foundation that enhances the International Financial Reporting Standards (IFRS). Included in the framework is the definition of each of the elements. With reference to the IFR

1.2.1 Provide the definition of an expense. (3 Marks)

1.2.2 Is the withdrawal of assets by the owner of the business in the form of "Drawings" classified as an expense? Motivate your answer with a brief explanation (2Marks)

1.2.3The framework identifies certain qualities that make the information presented on financial statements more useful to the users of financial statements. List at least two fundamental characteristics and three characteristics that enhance the fundamental characteristic (5 Marks)

2.Alice Angle is an architect who set up her own on 1 March 2021. She supplied the following information about transactions for the first month ended 31 March 2021 [25 Marks].please refer to Capture..1.PNG

2021 March 1 eg. 10 11 25 31 Transaction Alice deposited capital R70 000 into the business bank account. Paid R5 000 as rent for March 2021. Alice contributed equipment valued at RT5 000 that she was using at home. The equipment was fullyr paid for personally by Alice. Additional equipment was purchased for R35 000 and paid through Alice's personal bank accou nt. The business obtained a loan of R150 000 from Kind Bank and deposited into the business bank account. The loan is repayable in 3 equal annual instalments. The rst instalment is payable on 31 March 2023. Interest is payable monthly at 7% per year beginning on 1 April 2021. Purchased a vehicle for business purposes from Fast Cars Ltd for R220 000. Paid a deposit equal to 20% of the purchases price by making an electronic nds payment (EFT). The balance will be paid in 35 monthly instalments of R6 320 beginning 4 June 2021. Purchased consumable material for R3 150 and paid by EFT. Provided services to clients on credit for a total of R95 600. Issued receipts to clients for total of RYES 600 in payment of the client's accounts Paid salaries of R15 000 by making direct deposits into the employee's bank accounts. Example of the table required: Date Mar. 139 Liabilities R Bank Account Debited Account Credited Capital- Angle {20)