Guys I am new to accounts and trying my best to learn without any coaching. I came across the following problem in NCERT's 11th std textbook:
Mr. Sunrise started a business for buying and selling of stationery with Rs. 5,00,000
as an initial investment. Of which he paid Rs.1,00,000 for furniture, Rs. 2,00,000
for buying stationery items. He employed a sales person and clerk. At the end of the
month he paid Rs.5,000 as their salaries. Out of the stationery bought he sold some
stationery for Rs.1,50,000 for cash and some other stationery for Rs.1,00,000 on
credit basis to Mr.Ravi. Subsequently, he bought stationery items of Rs.1,50,000
from Mr. Peace. In the first week of next month there was a fire accident and he lost
Rs. 30,000 worth of stationery. A part of the machinery, which cost Rs. 40,000, was
sold for Rs. 45,000.
From the above, answer the following :
What is the gain he earned?
The answer given in the text book is Rs. 5,000. Can u please tell me how to arrive at this answer?
CAclubindia
