Mr. Roop Narain Vijay started business of buying and selling of Redaymade Garments
with ₹ 10,00,000 as an initial investment. Of which he paid ₹ 2,00,000 for furniture,
₹ 3,00,000 for buying ladies and kids garments for resale purpose. He employed two
salesman and one clerk. At the end of the month be paid ₹ 25,000 as their salaries.
Out of the garments purchased he sold some garments for ₹ 2,50,000 for cash and
balance to Mr. Yogesh on credit for ₹1,00,000. In the next month a fire broke out in his office
and furniture costing ₹ 45,000 was last due to fire that was uninsured. He also
sold the delivery van of Book value ₹3,00,000 for ₹ 3,05,000.
During next month he purchased some more garments from Mr. Mehta for
₹ 55,000 which are still unsold.
From the above, answer the following:
(i) What is the amount of Capital with which Mr. Roop Narain started business?
(ii) What fixed assets did he buy?
(iii) What is the value of goods purchased?
(iv) Who is the creditor and state the amount payable to him?
(v) What are the expenses?
(vi) What is the profit earned or loss suffered from the sale of goods?
(vii) What gain he earned?
(viii) What loss he incurred?
(ix) Who is the debtor? What is the amount receivable from him?
(x) What is the value of closing stock?
(xi) How much cash is left with Mr. Roop Narain, at present?
Answers
Answer:
Explanation:
(i) What is the amount of Capital with which Mr. Roop Narain started business?
= Rs. 10,00,000
(ii) What fixed assets did he buy?
= He purchase Furniture as an asset of Rs. 2,00,000
(iii) What is the value of goods purchased?
= Goods purchased = 3,00,000 + 55000 = 355,000
(iv) Who is the creditor and state the amount payable to him?
= Mr. Roop narain Vijay is Creditor and he has to pay 1,00,000
(v) What are the expenses?
= Salaries of the Salesmen and clerk = 25000
(vi) What is the profit earned or loss suffered from the sale of goods?
= Garments purchased at 3,50,000 and sold at 350000 = 50000
Furniture cost 2,00,000 and sale value is 45000 = - 155,000
Sold van whose book value is 300000 and sale at 305000 = 5000
He suffered loss of Rs. 100,000
(vii) What gain he earned?
= 55,000
(viii) What loss he incurred?
= 155,000
(ix) Who is the debtor? What is the amount receivable from him?
= Mr. Yogesh. The amount receivable from him is 1,00,000