Question

5. Sushil started business on 1st April, 2014 with an initial investment of 6,00,000. He purchased machinery for 2,00,000 from Sohan and paid him half of the amount immediately. He also purchased furniture for 50,000 and deposited half of the remaining amount in the bank. He purchased goods from Ram for 3,00,000 and paid 1/3rd of the amount immediately. He sold goods costing 1,00,000 to Prateek for 3,50,000 and received 1/5th of the amount immediately and sold goods costing 50,000 for 20,000 to Ramneek out of which half of the amount was received immediately. Sunshil had appointed a manager at a commission of 10% on sales. During the period, a fire broke out in godown and goods for 10,000 were destroyed by fire. During the year he withdrew 10,000 for his personal use. Answer the following questions :- (a) What is the amount of initial investment of the proprietor? (b) Name the fixed assets with their amounts. (c) What is the amount deposited in bank? (d) Who is the creditor and what is the amount due to him? (e) Who is the debtor and what is the amount due from him? (f) Calculate the amount of closing stock. (g) Identify with amounts profit, losses, expenses (h) What is the effect of drawings on capital?

Answer 1

Answer:

PAID RENT FOR THE OFFICE =1,000