Azman paid RM 380000 to purchase a business entirely. The business has RM 50000 of debt, car, van, baking machine, café fitting and cutleries worth RM 75000 , RM 110000, RM 14000, RM 20000 and RM 8000 respectively. The business also left with RM 50000 of cash in hand. The van is expected to be useful for another 9 years with the annual depreciation of RM 10000 . He sold the car slightly below the market value with loss of RM 12000 to fund this business. On top of that, he applied personal loan of RM 50000 as a backup in case the business requires additional capital. The business is operating in a rented premise with RM 45000 of annual rental. The business is expected to last for 3 years with current financial position. Calculate the following for previous and new business: - (SOMULU & HANZALAH) a. Total assets b. Total capital c. Total liabilities Generate the accounting equation based on your answer in (1). - (SOMULU & HANZALAH) Explain at least FOUR (4) possible revenues for the business. - (PAVITRAN) Explain on why Azman willing to pay more than the asset value of the business. Discuss on the effects of this transaction to the business. - (PAVITRAN) Suggest on the measures to be taken by Azman to make sure that the business can last longer. - (CARMEL) Calculate the salvage value and depreciation rate of the van. - (CARMEL)
