T S GREWAL Solutions for Class 11-commerce Accountancy Chapter 2 - Basic Accounting Terms

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Chapter 2 - Basic Accounting Terms Exercise 2.18

Question PQ 1

Q 1

Solution PQ 1

 

 i. Initial capital introduced by Mr. Gopal for starting the business of "Readymade Garments" is Rs.8,00,000. 

 ii. He purchased two Fixed Assets i.e., Furniture and Computer. Therefore, 

Total Fixed Assets bought by him

= Furniture + Computer

= Rs.50,000 + Rs.50,000  =Rs.1,00,000

 iii. Value of the goods purchased by Mr. Gopal (Proprietor)

= Purchase of Garments + Purchase of Men's Garments

=4,00,000 + 2,00,000

= Rs.6,00,000

 iv. The creditor of the business is Mr. Satish with Rs.2,00,000 being payable to him.

 v. The debtor of the business is Mr. Rajesh with Rs.1,50,000 being the amount to be received from him.

vi. Total amount of expenses is Rs.15,000. (note)

vii. The amount of drawings of Mr. Gopal is Rs.20,000.

 

Note: As per the question correct answer is (vi) Total amount of expenses is Rs.15,000 against the solution provided in the book where total amount of expenses are Rs.6,15,000.