comprehensive question

Mr. Tushar decided to start a computer business. For this purpose he built the first floor of his house at a cost of Rs. 2,00,000 and invested a further sum of Rs. 3,50,000 in this business. He wanted to start with 12 computers costing Rs. 40,000 each. He approached ICICI Bank and secured a loan to the extent of 75% of the cost of computers. It was agreed that the loan will be repaid in four annual instalments as follows: At the end of First Year : Rs. 90,000 + Rs. 36,000 for interest At the end of Second Year : Rs. 90,000 + Rs. 27,000 for interest At the end of Third Year : Rs. 90,000 + Rs. 18,000 for interest At the end of Fourth Year : Rs. 90,000 + Rs. 9,000 for interest He started business on 1st April, 2002. On the same date he deposited Rs. 3,30,000 in the Bank. He purchased Computers and paid 25% of the value of computers from his bank and Rs. 3,60,000 out of bank loan availed. He deposited Rs. 10,000 for the electric connection with the Electricity Board and also deposited Rs. 1,50,000 with the VSNL for internet and telephone connection. He spent Rs. 40,000 for getting the Computer Café furnished and also spent Rs. 6,000 in getting the pamphlets printed and distributed. All payments were to be made by cheques and all the receipts were to be deposited in the bank on the same day. At the end of the same year, the results were: Rs. Purchases of Computer stationery like floppy discs, CDs etc. 92,000 Revenue from fees received from students of Computer classes 2,70,000 Revenue on Account of Internet Facility 2,20,000 Revenue from sale of Computer Stationery 1,60,000 Wages paid to Servan

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