Question 2

Mr. Anthony opened a bakery shops on 1 January 2022. The transactions for the month are as follows:

Date	Transactions
1	Started in business and deposited RM60,000 into a bank account opened specially for the business.
2	Owner buys some inventory for RM8,000 from Hen Yeng, and agrees to pay them within the next two weeks.
10	Bought mixing machine worth RM10,000 by cheque.
11	Sold goods worth RM500 on credit.
12	Received cheque of RM1,000 from customer
14	Paid creditors amount due RM8,000 by cheque.
25	Paid utility expenses amounting to RM400 by cheque.
27	The business borrows RM30,000 from the bank, the loan to be repaid in 3 years.
30	Received dividend for the year 2021 for RM5,000. This amount has been credited in the companys bank account.

As per the example provided below, you are required to: 1 January 2022- Started in business and deposited RM60,000 into a bank account opened specially for the business.

2022	Effects	Account to be debited	Account to be credited	Book prime of entry
Jan 1	Increase asset Increase capital	Bank RM 60,000	Capital RM60,000	General journal

(a)Show the effects (increase/decrease) upon assets, liabilities, expenses, revenue and owners equity for the transactions. (4 marks)

(b)State the journal entries (debit/credit). (4 marks)

(c)Identify the appropriate book of prime entry to record the transactions. (2 marks)

(Total:10 Marks)