Relationship between starting capital and stock purchase account in the first year of any business

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student
48 Points Posted on 01 January 2020
sir, if a person introduce capital in his business rs 200000 in his first year of business..and purchase of trading stock of rs 800000..is it possible??
(obviously his opening stock is nil bcoz it is his first year of business)
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On 01 January 2020 at 19:09 Report
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Quick Summary
This discussion explores whether a business can purchase £800,000 of trading stock in its first year with an initial capital injection of £200,000. While technically possible, it's noted that the stock level is quite high. Maintaining a healthy cash and bank balance, along with managing receivables, is crucial for such a scenario.

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Profession
28261 Points Posted on 03 January 2020
Is it sole proprietor
or
partnership...
1 Reply
On 03 January 2020 at 13:29
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student
48 Points Posted on 03 January 2020
Sole proprietor, not partnership
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On 03 January 2020 at 13:32
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Profession
28261 Points Posted on 03 January 2020
Trading stock is little on the higher side ..
6 laks will be sufficient....
but u hv to main a cash bal on the higher side and bank balance .
receivable during g the first year of operation is mandatory.
1 Reply
On 03 January 2020 at 13:58

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