QUESTION 1 Syazwani, a pastry chef has started coffee and bakery business with her two good friends, Maizatul and Nadia, which was registered under the name "SYAZMAINA PASTRY HOUSE" (SPH)

QUESTION 1 Syazwani, a pastry chef has started coffee and bakery business with her two good friends, Maizatul and Nadia, which was registered under the name "SYAZMAINA PASTRY HOUSE" (SPH). SPH offers a broad range of coffee products and freshly homemade bakery and pastry products. They started the business by investing a capital totalling RM150,000. A loan applied by SPH from Bank Bumi was approved amounting to RM180,000 with 5% interest per annum. The interest on loan is paid on monthly basis by cash. RM55,000 of the loan was used to buy a delivery van. Part of the remaining loan and amount invested by partners were used to buy the items below: Items RM Baking trays and pans 12,000 Computer 5,000 Various cutlery and utensils 8,000 3 Mixers 2,900 each 4 Commercial ovens 3,200 each 5 Cooling racks 1,200 each Wax paper and packaging boxes 5,000 Ingredients 11,600 The monthly salary of the two full time pastry bakers is RM3,200 each and six-part time baristas were hired to handle customer service and day-to-day operations. The baristas is paid a monthly wages of RM1, 100 each. For security purposes, the premises and equipment were insured against fire, theft and damage and incurred a monthly insurance premium of RM850. The monthly rental of the business premises was RM1,200. Required: a. State any six (6) characteristics possessed by the business set up above. (6 marks) b. Explain three (3) accounting concepts applied by SYAZMAINA PASTRY HOUSE. (6 marks)