1. Given below are the business transactions of Zauraa Vision Enterprise, during the month of February 2022

February	Transactions
1	Kurniadi invested RM88,000 cash in the business. (Example)
2	Interviewed candidates for a job vacancy with a monthly minimum salary of RM1,200.
3	Purchased goods worth RM8,000 from Mukhriz on credit.
4	Cash sales to Aman worth RM10,000.
5	Paid RM700 for advertisement on Facebook.
9	Kurniadi took out RM300 goods for personal use.
9	Kurniadi brought in his own computer worth RM2,000 into the business.
15	Returned damaged goods worth RM800 to Mukhriz.
16	Borrowed RM100,000 long-term loan from MBB Bank.
17	Sales amounting to RM10,500 to Amir on credit.
19	Received commission worth RM3,700 by cheque.
20	Pay Mukhriz in full with a cheque.
23	Unexpectedly, received a full settlement from Amir
26	Purchased office equipment in cash for RM10,000
28	Paid staff salaries for RM12,000 using cash.
28	Paid for insurance RM1,000.

Required:

Show the effects of the above transactions based on the accounting equation in the form of table as shown below.

	Assets				=	Liabilities		Owners Equity
Date	Cash/Bank (RM)	Accounts receivable (RM)	Supplies (RM)	Office Equipment (RM)	=	Long-term Loan (RM)	Accounts payable (RM)	Capital Revenue (expenses) (Drawings) (RM)
1	+88,000				=			+88,000 Capital

(Total: 15 marks)

QUESTION 2:

1. Puan Osnita is the owner of Kinross Enterprise. The financial year end of the business is on 31 December annually. You are required to determine the Gross profits using:

(a) the FIFO,

(b) the LIFO and

(c) the average methods

The units of an item available for sale and purchase during the year were as follows:

1 Jan	No Opening Balance
2 Jan	Purchase	60 units at RM575
15 Jan	Sales	40 units at RM700
15 Jan	Purchase	80 units at RM550
27 Jan	Sales	40 units at RM720

(13 marks)

2. Explain why the weighted average cost methods gross profits is more than the FIFOs method.

(2 marks)