Question

Z commenced a business of trading in electronic goods with an initial capital of 15,00,000, out of which, he paid 10,00,000 for purchasing electronic goods. He further spent 2,00,000 on furnishing the shop and 35,000 for purchase of computer.
What is the amount invested by Z in fixed assets?

(a) 15,00,000
(b) 2,35,000
(c) 2,00.000
(d) 10,00,000

Please explain...​

Answer 1

fixed assets are assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.

Answer:

200000 spent on furnishing the shop and 35000 spent on computer are the amounts spent on fixed assets.

therefore total amount spent on fixed assets

=200000+35000

=Rs.235000(b)

Hope it helps