A business was started on 01.04.2018 with a capital of Rs. 8,00,000. Expenditure incurred on the purchase of machinery was Rs. 1,50,000 out of which Rs. 20,000 is payable & closing balance of cash is Rs. 8,70,000. What is the amount of cash received during the year?

Rs. 2,10,000

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Rs. 2,20,000

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Rs. 2,00,000

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Rs. 8,00,000

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Solution

The correct option is C
Rs. 2,00,000

Amount received
= Closing balance + Expenses incurred - Opening balance

= Rs. 8,70,000 + Rs. 1,30,000 - Rs. 8,00,000

= Rs. 2,00,000.

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Mahendra Keeps his books by Single Entry System. His position on 1^st April 2012, was as follows : Cash in Hand Rs 7,900, Cash at Bank Rs 20,000, Debtors Rs 18,000. Stock Rs 29,000, Motor Car Rs 5,000, Bank Loan Rs 18,000 and Outstanding Expenses Rs 2,700.
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Prepare a Statement showing the Profit or Loss made by him during the year ended 31^st March, 2013 and Opening and Closing Statement of affairs. Considered the following adjustments also.
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A business was started on 01.04.2018 with a capital of Rs. 8,00,000. Expenditure incurred on the purchase of machinery was Rs. 1,50,000 out of which Rs. 20,000 is payable & closing balance of cash is Rs. 8,70,000. What is the amount of cash received during the year?

The correct option is C Rs. 2,00,000 Amount received = Closing balance + Expenses incurred - Opening balance = Rs. 8,70,000 + Rs. 1,30,000 - Rs. 8,00,000 = Rs. 2,00,000.

The correct option is C
Rs. 2,00,000

Amount received
= Closing balance + Expenses incurred - Opening balance

= Rs. 8,70,000 + Rs. 1,30,000 - Rs. 8,00,000

= Rs. 2,00,000.