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Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,?
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Commenced business with cash. Cash 50000 , machinery 15000, stock 5000...
Commencing Business with Cash, Machinery, and Stock
- Cash: The business started with a cash injection of 50000. This cash can be used to pay for various expenses such as rent, salaries, and bills. It can also be used to purchase additional stock or machinery as needed.
- Machinery: The business acquired machinery worth 15000. This machinery can be used to manufacture products or perform various services. It is an asset that can be used to generate revenue for the business.
- Stock: The business also acquired stock worth 5000. This stock can be sold to customers at a markup, generating profit for the business. Alternatively, it can be used to manufacture products or provide services to customers.
Implications of Commencing Business with Cash, Machinery, and Stock
The business has several advantages and disadvantages as a result of commencing operations with cash, machinery, and stock.
Advantages:
- The business has a cash reserve that can be used to pay for expenses and purchase additional assets as needed.
- The machinery can be used to manufacture products or provide services, generating revenue for the business.
- The stock can be sold to customers at a markup, generating profit for the business.
Disadvantages:
- The business has a limited amount of cash and may need to seek additional funding in the future.
- The machinery may become outdated or require repairs, which can be expensive.
- The stock may become obsolete or unsellable, resulting in a loss for the business.
Conclusion
Commencing business with cash, machinery, and stock has both advantages and disadvantages. The business must carefully manage its resources to ensure that it can generate revenue and remain profitable. By doing so, it can build a strong foundation for future growth and success.
Community Answer
Commenced business with cash. Cash 50000 , machinery 15000, stock 5000...
Cash A/c. Dr. 50000. -
machinery A/c. Dr. 15000. -
stock A/c. Dr. 5000. -
To capital A/c. - 70000
(being business start with capital)
machinery A/c. Dr. 15000. -
stock A/c. Dr. 5000. -
To capital A/c. - 70000
(being business start with capital)
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Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,?.
Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Commenced business with cash. Cash 50000 , machinery 15000, stock 5000,?.
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