Mr Lobo after working for twenty years in retail sector ventured into his own retail store in electronic

goods named Mega Electronics Pvt ltd which commenced business on July 1, 2022. The capital invested
was Rs 10 lac which was contributed by himself and his old friend Mr James. They both subscribed
50000 shares of Rs 10 each.

They hired a Store keeper at a salary of Rs. 15000 p.m and also two store assistant at salary of Rs 5000
each. Mr Lobo thought that being an experience person he should be able to handle all other transactional
matter on his own and he also ensured that all monetary transaction to happen through banking channel
only. However at the end of the month he was stranded as he was unable to estimate the financial position
of his business Mr. Lobo is now seeking advice of yours as a Professional to help him in this problem .

Mr Lobo has maintained a date wise diary in which he has recorded information about his business. The
diary has following information

July 2: He purchased laptop costing Rs 50000/-

July 3: He received electronic goods from M/S Rajesh & Co costing Rs 5,00,000

July 5: He also received Office Supplies worth Rs 3000/- and the payment was done immediately

July 6: Sales of Rs 300000 was made out of which Rs 100000 was on credit to various customers

July 10: He settled the account with M/s Rajesh & Co

July 20: Sales was made to M/s Vijay & Co amount Rs 50000

July 25: Customer returned the goods citing defect which were sold on cash on July 6 of amount Rs
10000 and on same date Mr James returned it to Rajesh & Co cost of which was Rs 8500

Mr James has also revealed that he has paid salary to staff for June. He has also received electricity Bill of
amount Rs 6000 for month of July which is due. Office supplies of worth Rs 500 are still lying. As a
professional you were able to evaluate that stock lying is of worth Rs 250000