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#### Page No 5.16:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Bank (Rs) + Stock (Rs) = Creditors (Rs) (Rs) (i) Started business with cash 45,000 = 45,000 45,000 = 45,000 (ii) Opened a Bank Account with a deposit – 4,500 + 4,500 = 40,500 + 4,500 = 45,000 (iii) Bought goods from M/s. Sun & Co. 11,200 = 11,200 40,500 + 4,500 + 11,200 = 11,200 + 45,000

 Total Assets = Cash + Bank + Stock = 40,500 + 4,500 + 11,200 = Rs 56,200 Liabilities = 11,200 Capital = 45,000

#### Page No 5.16:

 S. No Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Debtors (Rs) Creditors (Rs) (Rs) (i) Gopinath Started business with 25,000 = 25,000 25,000 = 25,000 (ii) Purchased goods from Shyam 10,000 10,000 25,000 + 10,000 = 10,000 + 25,000 (iii) Sold goods to Sohan – 1,800 + 1,500 = – 300 25,000 + 8,200 + 1,500 = 10,000 + 24,700 (iv) Gopinath withdrew from business –5,000 = – 5,000 20,000 + 8,200 + 1,500 = 10,000 + 19,700

 Assets = 20,000 + 8,200 + 1,500 = Rs 29,700 Liabilities = Rs 10,000 Capital = Rs 19,700

#### Page No 5.17:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Advances Expenses (Rs) = Outstanding Expenses (Rs) (Rs) (i) Started business with Cash 50,000 = 50,000 50,000 = 50,000 (ii) Salaries paid – 2,000 = – 2,000 (expenses) 48,000 = 48,000 (iii) Wages Outstanding = 200 + – 200 (expenses) 4,800 = 200 47,800 (iv) Interest due but not paid = 100 + – 100 (expenses) 48,000 = 300 + 47,700 (v) Rent paid in advance – 150 + 150 = 47,850 + 150 = 300 + 47,700

 Assets = 47,850 + 150 = Rs 48,000 Liabilities = Rs 300 Capital = Rs 47,700

#### Page No 5.17:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) = Creditors (Rs) + Outstanding Rent (Rs) (Rs) (i) Harish started business with cash 18,000 = 18,000 18,000 = 18,000 (ii) Purchased goods for Cash Rs 5,000 and on credit Rs 2,000 – 5,000 + 7,000 = 2,000 13,000 + 7,000 = 2,000 + 18,000 (iii) Sold goods for cash Rs 4,000 costing Rs 2,400 4,000 – 2,400 = 1,600 (Profit) 17,000 + 4,600 = 2,000 + 19,600 (iv) Rent paid Rs 1,000 and Rent Outstanding Rs 200 – 1,000 = 200 – 1,200 16,000 + 4,600 = 2,000 + 200 + 18,400

 Assets = 16,000 + 4,600 = Rs 20,600 Liabilities = 2,000 + 200 = Rs 2,200 Capital = Rs 18,400

#### Page No 5.17:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Furniture (Rs) = Creditors (Rs) (Rs) (i) Started business with cash Rs 1,00,000 and Goods Rs 20,000 1,00,000 + 20,000 = 1,20,000 1,00,000 + 20,000 = 1,20,000 (ii) Sold goods worth Rs 10,000 for cash Rs 12,000 12,000 – 10,000 = + 2,000 1,12,000 + 10,000 = 1,22,000 (iii) Purchased furniture on credit for Rs 30,000 30,000 = 30,000 1,12,000 + 10,000 + 30,000 = 30,000 + 1,22,000

 Assets = 1,12,000 + 10,000 + 30,000 = Rs 1,52,000 Liabilities = Rs 30,000 Capital = Rs 1,22,000

#### Page No 5.17:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Furniture (Rs) + Stock (Rs) = (Rs) (i) Ajit started business Rs 20,000 20,000 = 20,000 20,000 = 20,000 (ii) He purchased furniture for Rs 2,000 – 2,000 + 2,000 = 18,000 + 2,000 = 20,000 (iii) He paid Rent of Rs 200 – 200 = – 200 (expense) 17,800 + 2,000 = 19,800 (iv) He purchased goods on credit Rs 3,000 3,000 = 3,000 17,800 + 2,000 + 3,000 = 3,000 + 19,800 (v) He sold goods (cost price Rs (2,000) for Rs 5,000 on cash 5,000 + + –2,000 = 3,000 (Profit) 22,800 + 2,000 + 1,000 = 3,000 + 22,800

 Assets = 22,800 + 2,000 + 1,000 = Rs 25,800 Liabilities = Rs 3,000 Capital = Rs 22,800

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 22,800 Cash 22,800 Creditors 3,000 Furniture 2,000 Stock 1,000 25,800 25,800

#### Page No 5.17:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Debtors (Rs) = Creditors (Rs) (Rs) (i) Started business with cash Rs 1,00,000 1,00,000 = 1,00,000 1,00,000 = 1,00,000 (ii) Purchased goods for cash Rs 20,000 and on credit Rs 30,000 – 20,000 + 20,000 30,000 = 30,000 80,000 + 50,000 = 30,000 + 1,00,000 (iii) Sold goods for cash costing Rs 10,000 and on credit costing 12,000 + – 10,000 = 2,000 Rs 15,000 both at a profit of 20% – 15,000 + 18,000 = 3,000 92,000 + 25,000 + 18,000 = 30,000 + 1,05,000

#### Page No 5.17:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Furniture (Rs) = Creditors (Rs) (Rs) Mohan commenced business with cash 50,000 = 50,000 50,000 = 50,000 (ii) Purchased goods for cash – 30,000 + 30,000 = 20,000 + 30,000 = 50,000 (iii) Purchased goods on credit 20,000 = 20,000 20,000 + 50,000 = 20,000 + 50,000 (iv) Sold goods costing Rs 10,000 for Rs 12,000 12,000 + – 10,000 = 2,000 (profit) 32,000 + 40,000 = 20,000 + 52,000 (v) Bought furniture on credit 2,000 = 2,000 32,000 + 40,000 + 2,000 = 22,000 + 52,000 (vi) Paid cash to a creditor – 15,000 = – 15,000 17,000 + 40,000 + 2,000 = 7,000 + 52,000 (vii) Salary Paid – 1,000 = – 1,000 (expenses) 16,000 + 40,000 + 2,000 = 7,000 + 51,000

 Assets = 16,000 + 40,000 + 2,000 = Rs 58,000 Liabilities = Rs 7,000 Capital = Rs 51,000

#### Page No 5.17:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Machinery (Rs) (Rs) (Rs) (i) Started business with Cash Rs 70,000 70,000 70,000 70,000 70,000 (ii) Credit purchase of goods Rs 18,000 18,000 = 18,000 70,000 + 18,000 = 18,000 + 70,000 (iii) Payment made to creditor Rs 17,500 in full settlement – 17,500 = – 18,000 + 500 (Discount Received) 52,500 + 18,000 = 70,500 (iv) Purchase of Machinery for Cash Rs 20,000 – 20,000 20,000 32,500 + 18,000 + 20,000 = 70,500 (v) Depreciation on Machinery Rs 2,000 – 2,000 – 2,000 (Depreciation) 32,500 + 18,000 + 18,000 = 68,500

 Assets = 32,500 + 18,000 + 18,000 = Rs 68,500 Liabilities = NIL Capital = Rs 68,500

#### Page No 5.18:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Prepaid Rent (Rs) + Stock (Rs) Creditors (Rs) + Salary outstanding (Rs) (Rs) (i) Commenced business with cash Rs 60,000 60,000 60,000 60,000 = 60,000 (ii) Paid Rent in Advance Rs 500 – 500 + 500 59,500 + 500 = 60,000 (iii) Purchased goods for Cash Rs 30,000 and Credit Rs 20,000 – 30,000 + 50,000 20,000 29,500 + 500 + 50,000 = 20,000 + 60, 000 (iv) Sold goods for Cash Rs 30,000 Costing Rs 20,000 30,000 + + – 20,000 10,000 (Profit) 59,500 + 500 + 30,000 = 20,000 + 70,000 (v) Paid Salary Rs 500 and Salary Outstanding being Rs 100 – 500 = – 500 100 – 100 59,000 + 500 + 30,000 = 20,000 + 100 + 69,400 (vi) Brought motorcycle for personal use Rs 5,000 – 5000 = – 5000 (Drawings) 54,000 + 500 + 30,000 = 20,000 + 100 + 64,400

 Assets = 54,000 + 500 + 30,000 = Rs 84,500 Liabilities = 20,000 + 100 = Rs 20,100 Capital = 64,400

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 64,400 Cash 54,000 Creditors 20,000 Prepaid Rent 500 Salary Outstanding 100 Stock 30,000 85,500 85,500

#### Page No 5.18:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Accrued Interest (Rs) = Advance Commission (Rs) (Rs) (i) Started business with Cash Rs 60,000 60,000 = 60,000 60,000 = 60,000 (ii) Rent Received Rs 2,000 2,000 = 2,000 (Income) 62,000 = 62,000 (iii) Accrued Interest Rs 500 500 = 500 (Income) 62,000 + 500 = 62,500 (iv) Commission received in advance Rs 1,000 1,000 = 1,000 63,000 + 500 = 1,000 + 62,500 (v) Amount withdrawn Rs 5,000 – 5,000 = – 5,000 58,000 + 500 = 1,000 + 57,500

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 57,500 Cash 58,000 Advance Commission 1,000 Accrued Interest 500 58,500 58,500

#### Page No 5.18:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Prepaid Rent (Rs) + Stock (Rs) = Creditors (Rs) + Outstanding Salary (Rs) (Rs) (i) Started business with Cash Rs 10,000 10,000 10,000 10,000 = 10,000 (ii) Paid Rent in Advance Rs 300 – 300 300 9,700 + 300 = 10,000 (iii) Purchased goods for Cash Rs 5,000 and credit Rs 2,000 – 5,000 + + 5,000 = 2,000 2,000 = 4,700 + 300 + 7,000 = 2,000 + 10, 000 (iv) Sold goods for Cash Rs 8,000 Costing Rs 4,000 8,000 – 4,000 4,000 (Profit) 12,700 + 300 + 3,000 = 2,000 + 14,000 (v) Paid Salary Rs 450 and Salary outstanding being Rs 100 – 450 = – 450 (Expense) 100 – 100 (Expense) 12,250 + 300 + 3,000 = 2,000 + 100 + 13,450 (vi) Brought motorcycle for personal use Rs 3,000 – 3,000 = – 3,000 (Drawings) 9,250 + 300 + 3,000 = 2,000 + 100 + 10,450

 Assets = 9,250 + 300 + 3,000 = Rs 12,550 Liabilities = 2,000 + 100 = Rs 2,100 Capital = 10,450

#### Page No 5.18:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Furniture (Rs) + Debtors (Rs) Creditors (Rs) (Rs) (i) Raj Commenced business 70,000 = 70,000 70,000 = 70,000 (ii) Purchased goods on credit 14,000 = 14,000 70,000 + 14,000 = 14,000 70,000 (iii) Withdraw for Private use – 1,700 = – 1,700 (Drawings) 68,300 + 14,000 = 14,000 + 68,300 (iv) Goods purchased for Cash – 10,000 + 10,000 58,300 + 24,000 = 14,000 + 68,300 (v) Paid Wages – 300 = – 300 (Expense) 58,000 + 24,000 = 14,000 + 68,000 (vi) Paid to Creditors – 10,000 = – 10,000 48,000 + 24,000 = 4,000 + 68,000 (vii) Sold goods on credit – 15,000 + 15,000 = 48,000 + 9,000 + 15,000 = 4,000 + 68,000 (viii) Sold goods for cash (costing Rs 3,000) 4,000 – 3,000 1,000 (Profit) 52,000 + 6,000 + 15,000 = 4,000 + 69,000 (ix) Purchased Furniture – 500 500 51,500 + 6,000 + 500 + 15,000 = 4,000 + 69,000

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 69,000 Cash 51,500 Creditors 4,000 Stock 6,000 Furniture 500 Debtors 15,000 73,000 73,000

#### Page No 5.18:

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Bank (Rs) + Stock (Rs) + Furniture (Rs) + Motor Cycle (Rs) = Creditors (Rs) + Outstanding Rent (Rs) (Rs) (i) Commenced business with cash Rs 50,000 50,000 50,000 50,000 = 50,000 (ii) Paid in to bank Rs 10,000 – 10,000 + 10,000 40,000 + 10,000 = 50,000 (iii) Purchased goods for Cash Rs 20,000 and Credit Rs 30,000 –20,000 + 20,000 30,000 30,000 20,000 + 10,000 + 50,000 = 30,000 + 50,000 (iv) Sold goods for Cash Rs 40,000 Costing Rs 30,000 40,000 – 30,000 = 10,000 (Expense) 60,000 + 10,000 + 20,000 = 30,000 + 60,000 (v) Rent paid Rs 500 – 500 = – 500 (Expense) 59,500 + 10,000 + 20,000 = 30,000 + 59,500 (vi) Rent Outstanding Rs 100 100 + – 100 (Expense) 59,500 + 10,000 + 20,000 = 30,000 + 100 + 59,400 (vii) Bought furniture Rs 5,000 on credit 5,000 = 5,000 59,500 + 10,000 + 20,000 + 5,000 = 35,000 + 100 + 59,400 (viii) Bought refrigerator for personal use Rs 5,000 – 5,000 = – 5,000 (Drawings) 54,500 + 10,000 + 20,000 + 5,000 = 35,000 + 100 + 54,400 (ix) Purchased motorcycle for cash – 20,000 + 20,000 34,500 + 10,000 + 20,000 + 5,000 + 20,000 = 35,000 + 100 + 54,400

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 54,400 Cash 34,500 Creditors 35,000 Bank 10,000 Rent Outstanding 100 Stock 20,000 Furniture 5,000 Motor Cycle 20,000 89,500 89,500

#### Page No 5.19:

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) Creditors (Rs) + Outstanding Rent  (Rs) (Rs) (i) Started business with Cash Rs 50,000 and goods Rs 30,000 50,000 + 30,000 80,000 50,000 + 30,000 = 80,000 (ii) Purchased goods for Cash Rs 30,000 and on credit from Kiran Rs 20,000 – 30,000 30,000 20,000 20,000 20,000 + 80,000 = 20,000 + 80,000 (iii) Goods costing Rs 40,000 were Sold for Rs 55,000 55,000 - 40,000 15,000 (Profit) 75,000 + 40,000 = 20,000 + 95,000 (iv) Withdrew Cash for personal use Rs 10,000 – 10,000 – 10,000 (Drawings) 65,000 + 40,000 = 20,000 + 85,000 (v) Rent Outstanding Rs 2,000 2,000 – 2,000 (Expenses) 65,000 + 40,000 = 20,000 + 2,000 + 83,000