FINANCIAL ACCOUNTING 2 ASSIGNMENT QUESTION 1 Mak Salmah, a sole trader, selling of traditional foods for number of years. She does not keep proper records of her business transactions due to lack of accounting knowledge and expertise. In addition, her accounting records also does not be maintained according to double entry principles. Therefore, the valuation of her assets and liabilities are estimated as follows: 1 October 2020 30 September 2021 RM RM Inventory 4,080 5,200 Account receivables 2,490 3,100 Account payables 1,300 1,800 Office equipment 4,000 4,000 Bank 3,800 5,600 Prepaid insurance 300 Accrued electricity 450 Additional information: i. The annual depreciation for office equipment is 15% on cost. ii. Mak Salmah brought in a new furniture worth RM10,000 from her house for office purpose. This transaction has not been recorded. iii. Allowance for doubtful debts need to be provided at 5% of net account receivables. iv. Mak Salmah withdraws RM120 every month for her personal use. Required: Help Mak Salmah to determine the followings: - a) Prepare Statement of Affairs as at 1 October 2020 and 30 September 2021 b) Determine profit or loss for the year ended 30 September 2021 by preparing Statement of profit or loss c) Prepare Statement of Financial Position as at 30 September 2021 d) Advise Mak Salmah how to improve the existing accounting recording system so that she can keep proper records of her business transactions. i. Explain the differences between two methods applicable to this issue. ii. Suggest four (4) points and elaborate