RAMA’
CYBER CAFE
Mr. Rama decided to commence a computer business in a building which
was constructed at a cost of ¢ 1,00,000 and contributed a furth
2,50,000. He wanted to start with 10 computers. He went on to HDFC bank
and put up his proposal and managed to get a loan to the extend of his 75
percent of the cost of the computers ¢4, 00,000 with printers. It was agreed
that the loan will be repaid in three annual instalments as follows:
= Attheend of first year = Rs. 1,00,000 + 30,000 interest
= Atthe end of the 254 year =Rs. 1,00,000 + 20,000 interest
+ At the end of the3rd year =Rs, 1,10,000 (Rs. 1,00,000 + 10,000 inter
He started business on 1% A
0.000 in the bank.
il 1999. On the same date he deposited x
He gave
purchas
00,000 to com
ter company as 25% of the value of computers
(00,000 out of bank loan availed. He deposited 71,000 for
the electrical connection with the Electricity Board an
1, 00,000 with VSM-Tor the telephone Internet connection. He got the
also deposited of +
computer cafe furnished by paying 725,000 and also spent 71520 in getting
phlets printed and distributed,
AlrPayments were to be ma
by cheques and all the receipts were in cash
d'in the bank on the same day
At the end of the year, their
following
from fees receiv
rom students of computer class 2,80,000
* Revenue on account of internet facility 000
= Revenue from sale of computer stationer: 98,000
+ Purchases of computer stationery like floppy discs, CDs etc. 55,000
+ Telephone charge 34,000
= Petty expenses 12,000
= Entortáinment expenses 10,000
= Míscellaneous expenses 10,000
#7 Wages paid to servant 6,000
He withdrew £6,000 by cheque each month for their personal expenses. He
paid the bank loan regular