Question

Mr. Anand started business for buying and selling of shoes with an investment of Rs.16,00,000. Out of
this he paid Rs.8,00,000 for purchase of shoes, Rs.1,00,000 for furniture, Rs.1,00,000 for computers and
the remaining amount was deposited in bank. He sold some of the ladies and kids shoes for Rs. 6,00,000
for cash and some shoes to Mr. Areeb a retailer for Rs. 3,00,000 on credit. Subsequently, he bought
men's shoes of Rs. 4,00,000 from Mr. Mohan. In the first week of the next month, a fire broke out in his
office and stock of shoes worth Rs. 2,00,000 was destroyed. Later on, some shoes which cost Rs.
2,40,000 were sold for Rs. 2,60,000. Expenses paid during the same period were Rs. 30,000, Mr. Anand
withdrew Rs. 40,000 from business for his Domestic use.
From the above, answer the following:
(1) What is the amount of capital with which Mr. Anand started the business?
(11) What fixed assets did he buy?
(11) What is the amount of goods purchased?
(iv) Who is the creditor? How much amount is payable to him?
11
11

Answer 1

Explanation:

1) 16,00,000

2)he buyed shoes for 8,00,000 , furniture for 1,00,000 and computers for 1,00,000

3) 10,00,000