Double Entry Book Keeping Ts Grewal 2018 Solutions for Class 11 Commerce Accountancy Chapter 2 Accounting Equation are provided here with simple step-by-step explanations. These solutions for Accounting Equation are extremely popular among Class 11 Commerce students for Accountancy Accounting Equation Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal 2018 Book of Class 11 Commerce Accountancy Chapter 2 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal 2018 Solutions. All Double Entry Book Keeping Ts Grewal 2018 Solutions for class Class 11 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 5.17:
Question 1:
What will be effect of the following on the Accounting Equation?
(i) Started business with cash ₹ 45,000
(ii) Opened a Bank Account with a deposit of ₹ 4,500
(iii) Bought goods from M\s. Sun & Co. for ₹ 11,200
Answer:
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 5.17:
Question 2:
Show the Accounting Equation for the following transactions:
₹ | ||
(i) | Gopinath started business with cash | 25,000 |
(ii) | Purchased goods from Shyam | 10,000 |
(iii) | Sold goods to Sohan costing ₹ 1,800 | 1,500 |
(iv) | Gopinath withdrew from business | 5,000 |
Answer:
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 5.18:
Question 3:
Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash ₹ 50,000.
(ii) Salaries paid ₹ 2,000.
(iii) Wages Outstanding ₹ 200.
(iv) Interest due but not paid ₹ 100.
(v) Rent paid in advance ₹ 150.
Answer:
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 5.18:
Question 4:
What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 18,000
(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000
(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400)
(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200
Answer:
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 5.18:
Question 5:
Prepare Accounting Equation from the following:
(i) Started business with cash ₹ 1,00,000 and Goods ₹ 20,000.
(ii) Sold goods worth ₹ 10,000 for cash ₹ 12,000.
(iii) Purchased furniture on credit for ₹ 30,000.
Answer:
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 5.18:
Question 6:
Prepare an Accounting Equation and Balance Sheet on the following basis:
(i) Ajeet started business with cash ₹ 20,000.
(ii) He purchased furniture for ₹ 2,000.
(iii) He paid rent of ₹ 200.
(iv) He purchase goods on credit ₹ 3,000.
(v) He sold goods (cost price ₹ 2,000) for ₹ 5,000 on cash.
Answer:
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 5.18:
Question 7:
Prepare an Accounting Equation from the following:
(i) Started business with cash ₹ 1,00,000.
(ii) Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
(iii) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%.
Answer:
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 5.18:
Question 8:
Develop an Accounting Equation from the following transactions:
₹ | ||
(i) | Mohan commenced business with cash | 50,000 |
(ii) | Purchased goods for cash | 30,000 |
(iii) | Purchased goods on credit | 20,000 |
(iv) | Sold goods (costing ₹ 10,000) for | 12,000 |
(v) | Bought furniture on credit | 2,000 |
(vi) (vii) |
Paid cash to a creditor Salary paid |
15,000 1,000 |
Answer:
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
Cash (Rs) |
+ |
Stock (Rs) |
+ |
Furniture (Rs) |
= |
Creditors (Rs) |
|
(Rs) |
||
(i) |
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 5.19:
Question 9:
Prepare an Accounting Equation on the basis of the following transactions:
(i) Started business with cash ₹ 70,000.
(ii) Credit purchase of goods ₹ 18,000.
(iii) Payment made to creditors in full settlement ₹ 17,500.
(iv) Purchase of machinery for cash ₹ 20,000.
(v) Depreciation on machinery ₹ 2,000.
Answer:
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 5.19:
Question 10:
Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
(i) Commenced business with cash ₹ 60,000.
(ii) Paid rent in advance ₹ 500.
(iii) Purchased goods for cash ₹ 30,000 and credit ₹ 20,000.
(iv) Sold goods for cash ₹ 30,000 costing ₹ 20,000.
(v) Paid salary ₹ 500 and salary outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 5,000.
Answer:
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 5.19:
Question 11:
Show the effect of the following transactions and also prepare a Balance Sheet:
(i) Started business with cash ₹ 60,000.
(ii) Rent received ₹ 2,000.
(iii) Accrued interest ₹ 500.
(iv) Commission received in advance ₹ 1,000.
(v) Amount withdrawn ₹ 5,000.
Answer:
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 5.19:
Question 12:
Prove that the Accounting Equation is satisfied in all the following transactions of Sameer Goel:
(i) Started business with cash ₹ 10,000.
(ii) Paid rent in advance ₹ 300.
(iii) Purchased goods for cash ₹ 5,000 and credit ₹ 2,000.
(iv) Sold goods for cash ₹ 8,000 costing ₹ 4,000.
(v) Paid salary ₹ 450 and salary outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 3,000.
Answer:
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 5.20:
Question 13:
Show the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last new equation balance:
₹ | ||
(i) | Raj commenced business with cash | 70,000 |
(ii) | Purchased goods on credit | 14,000 |
(iii) | Withdrew for Private use | 1,700 |
(iv) | Goods purchased for cash | 10,000 |
(v) | Paid wages | 300 |
(vi) (vii) (viii) (ix) |
Paid to creditors Sold goods on credit for Sold goods for cash (cost price was Purchased motorcycle for cash ₹ 3,000) Purchased furniture for |
10,000 15,000 4,000 500 |
Answer:
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 5.20:
Question 14:
Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash ₹ 50,000.
(ii) Paid into bank ₹ 10,000.
(iii) Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.
(iv) Sold goods for cash ₹ 40,000 costing ₹ 30,000.
(v) Rent paid ₹ 500.
(vi) Rent outstanding ₹ 100.
(vii) Bought furniture ₹ 5,000 on credit.
(viii) Bought refrigerator for personal use ₹ 5,000.
(ix) Purchased motorcycle for cash ₹ 20,000.
Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.
Answer:
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 5.20:
Question 15:
Prepare an Accounting Equation from the following:
(i) Started business with cash ₹ 50,000 and goods ₹ 30,000.
(ii) Purchased goods for cash ₹ 30,000 and on credit from Karan ₹ 20,000.
(iii) Goods costing ₹ 40,000 were sold for ₹ 55,000.
(iv) Withdrew cash for personal use ₹ 10,000.
(v) Rent outstanding ₹ 2,000.
Answer:
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 Karan 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 |
|
|
|
|
|
|
|
|
|
|
|
Page No 5.20:
Question 16:
Show an Accounting Equation for the following transactions:
(i) D. Mahapatra commenced business with cash ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000; machinery ₹ 1,00,000 and furniture ₹ 50,000.
(ii) 1/3rd of above goods sold at a profit of 10% on cost and half of the payment is received in cash.
(iii) Depreciation on machinery provided @ 10%.
(iv) Cash withdrawn for personal use ₹ 10,000.
(v) Interest on drawings charged @ 5%.
(vi) Goods Sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months.
(vii) Received ₹ 10,000 from Gupta against the Bills Receivable on its maturity.
Answer:
|
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||||||||||
Cash (Rs) |
+ | Bank (Rs) |
+ |
Stock (Rs) |
+ |
Machinery (Rs) |
+ |
Furniture (Rs) |
+ |
Debtors (Rs) |
+ |
Bills Receivable (Rs) |
|
|
|
(Rs) |
||
(1) |
Started Business with Cash of Rs 50,000 and Bank of Rs 1,00,000 |
50,000 |
+ | 1,00,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,50,000 |
|
Stock Rs 60,000 |
|
|
60,000 |
|
|
|
|
|
|
|
|
|
|
|
60,000 |
||
|
Machinery Rs 1,00,000 |
|
|
|
|
1,00,000 |
|
|
|
|
|
|
|
|
|
1,00,000 |
||
|
Furniture Rs 50,000 |
|
|
|
|
|
|
50,000 |
|
|
|
|
|
|
|
50,000 |
||
|
|
50,000 |
+ | 1,00,000 |
+ |
60,000 |
+ |
1,00,000 |
+ |
50,000 |
|
|
|
|
= |
|
|
3,60,000 |
(ii) |
1/3rd of above goods sold at a profit of 10% on cost, that is, 60,000 × 1/3 = 20,000 × 110% = 22,000 and half of this is received in Cash |
11,000 |
|
(20,000) |
|
|
|
|
|
11,000 |
|
|
|
|
|
2,000 (Profit) |
||
|
|
61,000 |
+ | 1,00,000 |
+ |
40,000 |
+ |
1,00,000 |
+ |
50,000 |
+ |
11,000 |
|
|
= |
|
|
3,62,000 |
(iii) |
Depreciate Machinery by 10% (1,00,000 × 10%) |
|
|
|
|
(10,000) |
|
|
|
|
|
|
|
|
|
(10,000) Expenses |
||
|
|
61,000 |
+ | 1,00,000 |
+ |
40,000 |
+ |
90,000 |
+ |
50,000 |
+ |
11,000 |
|
|
= |
|
|
3,52,000 |
(iv) |
Cash withdrawn for personal use |
(10,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,000) |
||
|
|
51,000 |
+ | 1,00,000 |
+ |
40,000 |
+ |
90,000 |
+ |
50,000 |
+ |
11,000 |
|
|
= |
|
|
3,42,000 |
(v) |
Interest on Drawings charged @ 5% (10,000 × 5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(500) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
500 |
||
|
|
51,000 |
+ | 1,00,000 |
+ |
40,000 |
+ |
90,000 |
+ |
50,000 |
+ |
11,000 |
|
|
= |
|
|
3,42,000 |
(vi) |
Goods Sold to Gupta for Rs 10,000 and received a Bill Receivable for the same amount. |
|
|
(10,000) |
|
|
|
|
|
|
|
10,000 |
|
|
|
|
||
|
|
51,000 |
+ | 1,00,000 |
+ |
30,000 |
+ |
90,000 |
+ |
50,000 |
+ |
11,000 |
+ |
10,000 |
= |
|
|
3,42,000 |
(vii) |
Received Rs 10,000 from Gupta against the Bill Receivable on its maturity. |
10,000 |
|
|
|
|
|
|
|
|
|
(10,000) |
|
|
|
|
||
|
|
61,000 |
+ | 1,00,000 |
+ |
30,000 |
+ |
90,000 |
+ |
50,000 |
+ |
11,000 |
+ |
NIL |
= |
NIL |
+ |
3,42,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page No 5.21:
Question 17:
Prepare Accounting Equation from the following:
(a) Started business with cash ₹ 1,00,000.
(b) Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
(c) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20% .
(d) Paid salaries ₹ 8,000.
Answer:
S. No. |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||
Cash (Rs) |
+ |
Stock (Rs) |
+ |
Debtors (Rs) |
|
Creditors (Rs) |
|
(Rs) |
||
(i) |
Started business with cash |
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 |
+ |
50,000 |
|
|
= |
30,000 |
|
|
|
|
80,000 |
+ |
50,000 |
|
|
= |
30,000 |
+ |
1,00,000 |
(iii) |
Sold goods for cash costing Rs 10,000 and on credit costing Rs 15,000 both at profit of 20% |
12,000 |
+ |
– 25,000 |
+ |
18,000 |
|
|
|
5,000 (Profit) |
|
|
92,000 |
+ |
25,000 |
+ |
18,000 |
= |
30,000 |
+ |
1,05,000 |
(iv) |
Paid Salaries Rs 8,000 |
– 8,000 |
|
|
|
|
|
|
|
– 8,000 (Expenses) |
|
|
84,000 |
+ |
25,000 |
+ |
18,000 |
= |
30,000 |
+ |
97,000 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
= |
|
84,000 + 25,000 + 18,000 |
|
= |
Rs |
1,27,000 |
Liabilities |
= |
Rs |
30,000 |
Capital |
= |
Rs |
97,000 |
Page No 5.21:
Question 18:
Show the accounting equation on the basis of following transactions:
(a) Ram started business with ₹ 25,000.
(b) Purchased goods from Shyam ₹ 10,000.
(c) Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.
Answer:
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
Cash |
+ |
Stock |
+ |
Debtors |
= |
Creditors |
|
|
||
(i) |
Ram Started Business with Cash |
25,000 |
|
|
|
|
|
|
+ |
25,000 |
|
|
|
|
|
|
|
|
|
|