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:

i - Mr. Mehta bought purchased garments, furniture, computers for manufacturing and selling of readymade garments.

ii - Rs. 13000 and Rs 12000