Mr. Gopal thought of starting a business of readymade garments. For this, he withdrew cash of Rs 10,00,000 from his savings bank account & purchased goods worth Rs 7,00,000. Out of the balance, Rs 1,00,000 was paid by him as security for rent of the shop in which he shall start his business. He purchased furniture of Rs 1,00,000 for his shop & the rest was held as cash by him. What is value of capital introduced by him in the business?

Rs 7,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 8,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 9,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs 10,00,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Rs 10,00,000

Initial capital as introduced by Mr. Gopal for starting his business is Rs 10,00,000 as he has used all of this amount for his business & Rs 1,00,000 which is held in cash by him is also for the purpose of the business.

Suggest Corrections

Similar questions

Q. X had started business with

R s . 2, 00, 000

in the beginning of the year. During the year, he borrowed

R s . 1, 00, 000

from Y. He further introduced

R s . 2, 00, 000

in the business. He also gave

R s . 50, 000

as loan to his son. Goods given away as charity by him were

R s . 20, 000

. Profits earned by him were

R s . 2, 50, 000

. He also withdraw

R s . 30, 000

from the business. His capital at the end of the year would be__________.

Mr. Sahoo started business investing Rs 10,00,000. He purchased goods for Rs 4,00,000, Furniture for Rs 2,00,000 and plant and machinery of Rs3 ,00,000 & Rs 1,00,000 remains in hand. What shall be the amount of assets of the business in total?

Q. Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.

Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:
(i) What is the amount of capital with which Mr. Gopal started the business?
(ii) What fixed assets did he buy?
(iii) What is the value of the goods purchased?
(iv) Who is the creditor and state the amount payable to him?
(v) Who is the debtor and what is the amount receivable from him?
(vi) What is the total amount of expenses?
(vii) What is the amount of drawings of Mr. Gopal?

Panwar commenced business on 1st January 2016 with a capital of Rs. 10,000, which he paid into a bank account opened for the purpose.
On the same date, he brought furniture which cost Rs. 2,000 and made purchases of goods worth Rs. 6,500.
He kept his books on single entry system.
On 31st December 2016 stock was valued at Rs. 8,300. There were book debts amounting to Rs. 3,400 of which Rs. 200 represented debts which were irrecoverable.
Creditors amounted to Rs. 3,600 and bank passbook showed a balance of Rs. 1,450.
Panwar withdrew three times from business for his private expenses, each time he withdrew Rs. 600 and in addition, he used Rs. 500 worth of goods from his shop.
He took Rs. 1,000 as a loan from his wife during the year.
He gave Rs. 200 to his son from business, which he omitted to enter.

You are required to prepare a statement showing profit or loss in the business for the year ending 31st December 2016 from the above information.

Prepare an accounting equation from the following:

(i) Kunal started business with cash 2,50,000 Rs

(ii) He purchased furniture for cash 35,000 Rs

(iii) He paid commission 2,000 Rs

(iv) He purchased goods on credit 40,000 Rs

(v) He sold goods (costing 20,000) for cash 26,000 Rs

Join BYJU'S Learning Program

The correct option is D Rs 10,00,000 Initial capital as introduced by Mr. Gopal for starting his business is Rs 10,00,000 as he has used all of this amount for his business & Rs 1,00,000 which is held in cash by him is also for the purpose of the business.

The correct option is D
Rs 10,00,000

Initial capital as introduced by Mr. Gopal for starting his business is Rs 10,00,000 as he has used all of this amount for his business & Rs 1,00,000 which is held in cash by him is also for the purpose of the business.