Fassa Social club presented the following information for the year ended 31 December 2021. Page 2 of 6 During the year ended 31 December 2021, cash receipts and cash payments were as follows; a. Cash receipts b. Cash payments c. It is the entity's policy to depreciate motor vehicles using a rate of 20% per annum based on the straight line method. Motor vehicles were acquired on 30 June 2020 and depreciation is to be provided in the year of purchase. You are required to prepare; a. Fassa Social Club's Statement of financial affairs as at 1 January 2021 (6 marks) b. Fassa Social Club's bar trading account for the year ended 31 December 2021 . (6 marks) c. Fassa social Club's Statement of income and expenditure for the year ended 31 December 2021. d. Calculate the club's closing bank balance. (7 marks) (6 marks) Question 1 Matipa operates a tuck shop in Mkoba ,Gweru. She does not maintain proper accounting records. The following information is available: Additional information at 31 December 2021: 1. Drawings for the year were $6,000. 2. Additional capital amounted to $3,000 3. It is the entity's policy to depreciate equipment using a rate of 10% per annum basing on the reducing balance method. The entity acquired equipment on 30 June 2020. There were no acquisition or disposal of equipment during the year ended 31 December 2021. You are required to ; a. Prepare Matipa's Statement of affairs as at 1 January 2020. (7 marks) b. Ascertain the profit or loss for the year ended 31 December 2021. (15 marks) c. Outline any two limitations of incomplete records. (2 marks) Question 2 Fassa Social club presented the following information for the year ended 31 December 2021. Question 4 Dotito traders is operating two departments namely grocery and Butchery. The following balances are available as at 31 December 2021. Additional information 1. Inventory 31 December 2021; Grocery- $15,500 Butchery- $16,000 2. Rent expenses owing $13,000 3. Salaries and wages prepaid $12,000. 4. Electricity and water expenses were for 15 months to 31 March 2022 5. Rent expenses and electricity expenses must be apportioned between Grocery and Butchery basing on floor area. 6. Salaries and wages to be apportioned basing on the number of employees. The entity has a staff establishment of 10 employees of which 6 employees are employed by the grocery department and the remainder work in the butchery department. 7. 80% of the floor area is occupied by the grocery department and the remainder is utililised by the butchery department. You are required to prepare ; a. Dotito's departmental statement of comprehensive income for the year ended 31 December 2021. (20 marks) b. Identify any five factors to be considered before closing a loss making department. Page 5 of 6