Ram's Business Start-up

Capital Investment:
- Cash: Rs. 1,80,000
- Goods: Rs. 50,000
- Debtors: Rs. 10,000
- Furniture: Rs. 10,000
- Creditors: Rs. 20,000

Explanation:

Cash:
Ram initially invested Rs. 1,80,000 in cash to start his business. This cash will be used for various expenses such as purchasing goods, paying creditors, and meeting other business needs.

Goods:
Ram also invested Rs. 50,000 in purchasing goods. These goods will be sold to customers, generating revenue for the business. The cost of goods will be deducted from the sales revenue to determine the gross profit.

Debtors:
Ram has Rs. 10,000 as debtors. Debtors are individuals or entities who owe money to the business. These amounts represent the credit sales made by Ram's business. The business expects to receive this amount in the future.

Furniture:
Ram invested Rs. 10,000 in purchasing furniture for his business. Furniture is considered a fixed asset and is used for the smooth functioning of the business. It is not intended for resale and will be used for a longer duration.

Creditors:
Ram has creditors amounting to Rs. 20,000. Creditors are individuals or entities to whom the business owes money. These amounts represent the credit purchases made by Ram's business. The business will pay these creditors in the future.

Summary:
- Ram started his business by investing Rs. 1,80,000 in cash.
- He also invested Rs. 50,000 in purchasing goods for resale.
- The business has debtors amounting to Rs. 10,000, representing credit sales.
- Furniture worth Rs. 10,000 was purchased for business use.
- There are creditors amounting to Rs. 20,000, representing credit purchases.

These investments and debts form the initial financial position of Ram's business. As the business progresses, these amounts will be used and adjusted based on the business transactions and financial activities.