Question 14 Marks
Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:
- What is the amount of capital with which Mr. Gopal started the business?
- What fixed assets did he buy?
- What is the value of the goods purchased?
- Who is the creditor and state the amount payable to him?
- Who is the debtor and what is the amount receivable from him?
- What is the total amount of expenses?
- What is the amount of drawings of Mr. Gopal?
Answer
Total Fixed Assets bought by him = Furniture + Computer
= 50,000 + 50,000
= ₹ 1,00,000
= ₹ 6,00,000
View full question & answer→- Initial Investment made by Mr. Gopal for starting the business of "Readymade Garments" is ₹ 8,00,000.
- He bought two Fixed Assets i.e. Furniture and Computer of ₹ 50,000 each.
Total Fixed Assets bought by him = Furniture + Computer
= 50,000 + 50,000
= ₹ 1,00,000
- Value of the goods purchased by Mr. Gopal (Proprietor) = Purchase of Garments + Purchase of Men's Garments.
= ₹ 6,00,000
- Mr. Satish is the creditor of business with ₹ 2,00,000.
- Mr. Rajesh is the debtor of the business with ₹ 1,50,000.
- Total amount of Expenses = ₹ 15,000.
- Mr. Gopal withdrew ₹ 20,000 for domestic use (Drawings).