Question

Mr.Mahesh started business for buying and selling of electronics with Rs.9,00,000 as an initial

investment. Out of this, he paid Rs.3,00,000 for the purchase of electronic items and Rs.60,000 for

furniture and the remaining amount was deposited into the bank. In the next month, a fire broke

out in his office and stock worth Rs.1,00,000 was destroyed .Mr.Mahesh withdrew Rs.20,000 from

business for his domestic use. From the above, journalise the transactions for:

i. Capital investment in the business

ii. Revenue Expenditure

iii. Loss

iv. Capital expenditure
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Answer 1

Explanation:

iii) capital investment in the business