Question

On the basis of given case, answer the following questions

Amitabh started business of trading in fitness equipment’s on 1st April 2020 by investing

Rs.2,00,000 in cash. He also opened a bank account on the same day by transfer in 10 lakh from

his savings account with the same bank . He took a shop in Central New Delhi and hired a

interior designer to renovate the shop. He paid Rs.50000 as fees and Rs.500000 for renovation.

Amitabh placed an order for fitness equipment with M/s fitness first .On 15th April 2020 giving

an advance of Rs.25000 and balance being payable on delivery by cheque. The goods were

delivered on 1st May 2020 and the balance payment was made. He bought air conditioner, music

system and office chair worth Rs.1,00,000 for his shop. He also decided to sell accessories like

gloves, exercise clothes etc at his shop. he decided that on every sale made in the month of

May, he will allow a discount of 5% on cost price as a promo offer. He also decided to

donate Rs.250 on each equipment sold.

During the month of may he sold three treadmills of Rs.25000 each. Two against cheque and

one on credit to Raman.

1. What is the total capital invested by Amitabh?

2. Calculate the total amount of expenses incurred by Amitabh during the year..

3. Calculate total purchases for the duration.

4. Calculate the total amount of Charity for the month of May. Also state the type of account

charity is under the modern approach of accounting​

Answer 1

Answer:

ኸየኸየኸነኸኸየኸየኸነኸኸነኸነኸነከመኸነኸነኸኸኸየኸየወየጸየጸየጸየጸየጸየጸየጸየጸየጸየጸየጸየጸየጸነኸየኸየኸየጸነከነሰመሰሠከጰነየኸወለቀየኸየቀምመ ሜሞሖሑሕሞሗሖምምምሞመሰንሐከየሰየከኸሐነቀነ