Question

Kevin commenced business of trading in electronic goods with a capital of ₹.20, 00,000.
He paid ₹.15, 00,000 towards purchase of electronic goods. He further spent ₹.2, 00,000
on furnishing the shop and ₹.35, 000 for purchase of computer and printer, ₹10,000 is yet
to be paid to the supplier.
He sold goods costing ₹.5, 00,000 for ₹.8, 00,000 in cash and good ₹. 3, 00,000 for
₹.3, 50,000 on credit. Goods sold on credit for ₹. 30,000 were returned being defective.
These goods (costing ₹. 25,000) were returned to the supplier.
He purchased electronic goods for ₹.9, 00,000 out of which purchases of ₹. 3, 00,000
were on credit.
Due to earthquake, 2 LED Televisions costing ₹.70, 000 were completely destroyed.
Kevin received an insurance claim of ₹.30, 000.
A customer purchased goods costing ₹. 3, 00,000 for ₹. 3, 25,000 and was allowed
discount of ₹. 15,000. He was further allowed discount of ₹.5, 000 for payment within
agreed time.
He paid salary to Gopal of ₹. 50,000: ₹. 10,000 were yet to be paid. Kevin withdrew
₹. 20,000 during the year for his personal use.
You are required to answer the following questions on the basis of the above:
i) What is the amount invested by Kevin in fixed assets?
ii) What is the value of closing stock?
iii) What is the amount of current liabilities?

Answer 1

Answer:

Mr Prem commenced business in electronic goods with a initial capital of Rs 1500000 Out of the said Rs 1500000 he paid Rs 1000000 towards purchase of