Sam and Jay started with Cash 10,000 and Machinery 1,00,000. They decided to set up a production line for PPE kits for. the protection from Covid 19 virus. As their demand rose, they decided to buy one more piece of machinery. For the same, they took bank overdraft and purchased the machinery. The quality of the company's product was extremely high and therefore, it could develop a reputation for itself in the market and business was flourishing. After 1.5 years, their old machinery turned obsolete so they decided to sell the same. They sold it and got some cash proceeds. To further increase the brand presence among the concerned stakeholders, they decided to run advertisements from the cash proceeds of machinery sold. As more and more customers demanded their product, they decided to launch a discount for bulk purchases. The discount was not to be recorded in the books of accounts. This campaign was successful and they earned a lot of profits from the same.

Q1. Bank over draft means??

Q2. Which asset is discussed in the line, "The quality of the company's product was very high and therefore, it could develop a reputation for itself in the market and business was flourishing"?

Q3. Which type of liability is discussed in the passage?

Q4. What was the capital initially invested?

Answer rating: 100% (QA)

Lets answer the questions one by one Q1 Bank overdraft A bank overdraft is a type of shortterm loan ... View the full answer