with Double Entry Book Keeping-CB lustration. Mr. Prem commenced business of trading in electronic goods y initial capital of 15,00,000. Out of the said 15,00,000, he paid 10,00,000 tow 2.10 purchase of electronic goods. He further spent 2,00,000 on furnishing the shop s computer 35,000 for purchase of computer and printer, 10.000 is yet to be paid to supplier He sold goods costing & 5,00,000 for 22.00.000 in cash and goods costing 2,50,000 3.10,000 on credit. Goods sold on credit for 25.000 were returned being defecti These goods (costing 20.000) were returned to the supplier. Looking into the respo he decided to trade in home appliances also and further invested 5,00,000. He purchased electronic goods and home appliances for 8,00,000 out of whic Due to an earthquake, 2 LCD Televisions costing & 50,000 were completely destroyed purchases of 2,00,000 were on credit. Mr. Prem received an insurance claim of 30,000. of 15,000, He was further allowed discount of t5,000 for payment within agreed time A customer purchased goods costing 2.25,000 for 3,00,000 and was allowed discoun He paid salary to Shyam of t 55,000; 5,000 were yet to be paid. He insured the good and paid insurance premium of 10,000 Out of this, 5,000 are for the next year Mr. Prem withdrew 30,000 during the year for his personal use. You are required to answer the following questions on the basis of the above: What is the amount of capital invested in the business by Mr. Prem? (i) What is the amount invested by Mr. Prem in fixed assets? (iii) What is the amount of purchases? (ie) What is the amount of long-term liabilities? (c) What is the amount of current liabilities? (e) How much expenses did Mr. Prem incur during the year? (c) What is the amount of prepaid expenses? (vi) What is the amount of outstanding expenses? (ix) What is the income earned by Mr. Prem? (x) What is the amount due from debtors? (xi) What is the amount due to creditors? (xii) What is the value of Closing Stock? (xiii) What is the value of adjusted purchases? (iv) What is the amount of Trade Discount allowed? (x) Has Mr. Prem allowed Cash Discount? If yes, what is the amount? (xvi) What is the amount of Drawings? Exvii) What is the amount of Sales Return? viii) What is the amount of Purchases Return? olution: (i) Capital invested by Mr. Prem in the business is 20,00,000 15,0 75,00,000). (ii) Mr. Prem has invested? 2,35,000 in the fixed assets (2,00,000+ Out of this amount, 10,000 is payable. Bas