Question

Mr Mehta was engaged in the manufacturing and selling of readymade garments. He started the business with Rs 80000 as an initial investment. Out of this amount, he paid Rs 40000 for the purchase of garments, Rs5000 for furniture, Rs 5000 for computers, and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for Rs 30000 as cash and some garments for Rs 1500 on credit to Sumit.



Subsequently, he bought gents garments of Rs 20000 from Mr. Chandra. In the first week of the next month, a fire broke out in his office, and garment stock worth Rs 10000 was destroyed. Later on, some garment having a cost of Rs 12000 were sold for Rs 13000. Expenses paid during the same period were Rs 1500. In addition, Mr. Mehta withdrew Rs 2000 from the business for his personal use.



i- What Fixed assets Mr. Mehta buy?

ii- What is the amount Mr. Mehta earned as revenue?

Answer 1

Answer:

(1) assests= 10,000

Explanation:

Answer 2

Answer:

1. Mr. Mehta bought furniture, computers, and clothing for the production and sale of ready-made clothing = Rs. 10000
2. Mr. Mehta made Rs. 44,500 in revenue, which is equal to Rs. 44,500

Explanation:

• Mr. Mehta worked as a ready-made clothing manufacturer and retailer. With an initial investment of Rs 80000, he launched the company. He spent Rs. 40,00,000 of this money on clothing, Rs. 5,000 on furnishings, Rs. 5,000 on computers, and the rest was transferred into the bank.
• He sold some of the women's and children's clothing for Rs 30,000 in cash and some for Rs 1500 on Sumit's credit. He then spent Rs 20,000 for men's clothing from Mr. Chandra. A fire that started in his office during the first week of the following month destroyed clothing stock worth Rs 10,000. Later, some clothing that had cost Rs. 12000 was sold for Rs.13000
• So his fixed assets would be Mr. Mehta bought furniture, computers, and clothing for the production and sale of ready-made clothing
• 5000 + 5000 = 10000 fixed assets
• Revenue is the money we make from selling products.
• Mr. Mehta made Rs. 44,500 in revenue, which is equal to 30,000 + 1,500 + 13,000 =  Rs. 44,500.
• #SPJ2