Double Entry Book Keeping Ts Grewal 2025 for Class 11 Commerce

Accountancy

Chapter 2 – Basic Accounting Terms

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Question 1:

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

Subsequently, he bought men’s garments of Rs.2,00,000 from Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth Rs.1,00,000 was destroyed. Later on, some garments which cost Rs.1,20,000 were sold for Rs.1,30,000. Expenses paid during the same period were Rs.15,000. Gopal withdrew Rs.20,000 from business for his domestic use. 
From the above, answer the following:
(i) What is the amount of capital with which 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 Gopal?

Answer:

(i) Initial Investment made by Gopal for starting the business of “Readymade Garments” is Rs. 8,00,000.

(ii) He bought two Fixed Assets i.e. Furniture and Computer ofRs.50,000 each.
Therefore,
Total Fixed Assets bought by him = Furniture + Computer
                                                       = 50,000 + 50,000
                                                       = Rs. 1,00,000

(iii) Value of the goods purchased by Gopal (Proprietor) = Purchase of Garments + Purchase of Men’s Garments
Value of the goods purchased by Gopal (Proprietor) = 4,00,000 + 2,00,000
Value of the goods purchased by Gopal (Proprietor) = Rs. 6,00,000

(vi) Satish is the creditor of business with Rs. 2,00,000.

(v) Rajesh is the debtor of the business with Rs. 1,50,000.

(vi) Total amount of Expenses = Rs. 15,000.

(vii) Gopal withdrew Rs. 20,000 for domestic use (Drawings).