Accounts Project 3

Comprehensive Story No one can stop a person with an entrepreneurial mind from starting a business. Here I have presented a comprehensive story of a person living in Ahmedabad, his name was Jethalal Gada. Since quite young age he was inspired by visionaries such as Dhirubhai Ambani, Lakshmi Mittal, Narayan Murthy, e.t.c. He had decided his path since10th std. & followed it throughout. He first chose commerce stream, then took entrepreneurship, got good grades in 12th std. & did his MBA from B.K. school of management & proceeded to do his own business. He always had a dream to do the business in the field of plastics. In plastics, particularly pipes. The sole reason behind choosing this line was that, day by day more & more buildings are coming up in order to facilitate the growing population of Ahmedabad. In the making of the buildings pipes would be required. Thus if he provided pipes to the contractors which had a very good quality at an economical rate, then he would definitely earn good profits. The big problem standing ahead now was regarding capital. From where to get the money? He had Rs. 600,000. But that was not at all enough. He then started asking his friends, relatives & banks. He got money from the following places:-
Sr.
No. Name of the Investor Amount in Rs.
1 His uncle- Mr. Sunderlal Shah 500,000
2 His friend- Mr. Tarak Mehta 400,000
3 His own 600,000
4 State Bank of India 600,000
5 HDFC Bank 500,000

Total →2,600,000 He decided to repay all this money after one year. He took all the Loans under the name of Flowpipes. This name was suggested by his father Mr. Champaklal Gada. He now required land, building, machinery, workers, agents, advertisements, transportation & goodwill.

Assets For Land, he had his ancestral property of around 20 acres. Of this he sold 10 acres land & the money acquired was used in the making of the