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Page No 5.18:
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 5.18:
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 5.19:
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 5.19:
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 5.19:
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 5.19:
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 5.20:
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 5.20:
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:
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 14:
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 5.21:
Question 15:
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 16:
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 17:
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Purchased Goods from Shyam |
|
+ |
10,000 |
|
|
|
10,000 |
|
|
|
|
New A/c Equation |
25,000 |
+ |
10,000 |
|
|
= |
10,000 |
+ |
25,000 |
|
(iii) |
Sold Goods to Sohan costing Rs.1,500 for Rs.1,800 |
|
|
(-)1,500 |
+ |
1,800 |
|
|
+ |
300 (Profit) |
|
|
|
25,000 |
+ |
8,500 |
+ |
1,800 |
= |
10,000 |
+ |
25,300 |
|
|
|
|
|
|
|
|
|
|
|
|
Page No 5.21:
Question 18:
If the capital of a business is ₹ 3,00,000 and liabilities are ₹ 50,000, loss ₹ 70,000, calculate the total assets of the business.
Answer:
|
Total Assets |
= |
Capital – Loss + Liabilities |
|
|
= |
3,00,000 – 70,000 + 50,000 |
|
|
= |
Rs 2,80,000 |
Page No 5.21:
Question 19:
If total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000, calculate the creditors.
Answer:
|
Creditors |
= |
Total Assets – Net worth |
|
|
= |
1,30,000 – 80,000 |
|
|
= |
Rs 50,000 |
Page No 5.21:
Question 20:
A commenced his cloth business on 1st April, 2018 with a capital of ₹ 30,000. On 31st March 2019, his assets were worth ₹ 50,000 and liabilities of ₹ 10,000. Find out his closing capital and profits earned during the year.
Answer:
|
Closing Capital |
= |
Assets – Liabilities |
|
|
= |
50,000 – 10,000 |
|
|
= |
Rs 40,000 |
|
Profit |
= |
Closing Capital – Opening Capital |
|
|
= |
40,000 – 30,000 |
|
|
= |
Rs 10,000 |
Page No 5.21:
Question 21:
If capital of a business is ₹ 1,40,000 and liabilities are of ₹ 80,000, calculate the total assets of the business.
Answer:
|
Total Assets |
= |
Liabilities + Capital |
|
|
= |
80,000 + 1,40,000 |
|
|
= |
Rs 2,20,000 |
Page No 5.22:
Question 22:
Calculate the total assets if:
(i) Capital is ₹ 40,000.
(ii) Creditors are ₹ 25,000.
(iii) Revenue during the period is ₹ 50,000.
(iv) Expenses during the period are ₹ 40,000.
Answer:
|
Capital after Adjustment of revenue and expenses |
= |
Capital + Revenue – Expenses |
|
|
= |
40,000 + 50,000 – 40,000 = Rs 50,000 |
|
Total Asset |
= |
Capital after adjustment + Creditors |
|
|
= |
50,000 + 25,000 |
|
|
= |
Rs 75,000 |
Page No 5.22:
Question 23:
(a) A had a capital of ₹ 75,000 on 1st April, 2018. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
(b ) After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.
Answer:
| (a) | Total Assets |
= |
Capital + Creditors for purchase of Goods |
| = | 75,000 + 15,000 | ||
| = | Rs 90,000 | ||
| (b) | Capital at the end | = | Capital − Loss − Drawings |
| = | 75,000 − 1,700 − 800 | ||
| = | Rs 72,500 | ||
| Assets | = | Capital at the end + Creditors for purchase of Goods | |
| = | 72,500 + 15,000 | ||
| = | Rs 87,500 |
Page No 5.22:
Question 24:
(a) Mohan started a business on 1st April, 2018 with a capital of ₹ 10,000 and borrowed ₹ 3,000 from a friend. He earned a profit of ₹ 5,000 during the year ended 31st March, 2019 and withdrew cash ₹ 4,000 for personal use. What is his capital on 31st March, 2019?
(b) Mahesh started a business with a capital of ₹ 15,000 on 1st April, 2018. During the year, he made a profit of ₹ 3,000. He owes ₹ 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2019?
Answer:
(a) Capital on March 31, 2019 = Capital on April 01, 2018 + Profit − Drawings
= 10,000 + 5,000 − 4,000 = Rs 11,000
(b) Total Assets on March 31, 2019 = Capital on April 01, 2018 + Profit + Creditors
= 15,000 + 3,000 + 2,500 = Rs 20,500
Page No 5.22:
Question 25:
Mohan started a business on 1st April, 2018 with a capital of ₹ 25,000 and a loan of ₹ 12,500 borrowed from Shyam. During 2018-19 he had introduced additional capital of ₹ 12,500 and had withdrawn ₹ 7,500 for personal use. On 31st March, 2019 his assets were ₹ 75,000. Find out his capital as on 31st March, 2019 and profit made or loss incurred during the year 2018-19.
Answer:
Capital on March 31, 2019 = Assets − Loan from Shyam
= 75,000 − 12,500 = Rs 62,500
Profit (or Loss) during the year 2018-19 = Capital on March 31, 2019+ Drawings − (Additional Capital + Capital on April 01, 2018)
= 62,500 + 7,500 − (12,500 + 25,000)
= 70,000 − 37,500 = Rs 32,500
Page No 5.22:
Question 26:
On 31st March, 2019, the total assets and external liabilities were ₹ 2,00,000 and ₹ 6,000 respectively. During the year, the proprietor had introduced capital of ₹ 20,000 and withdrawn ₹ 12,000 for personal use. He made a profit of ₹ 20,000 during the year. Calculate the capital as on 1st April, 2018.
Answer:
Capital as on March 31, 2019 = Total Assets − External Liabilities
= 2,00,000 − 6,000 = Rs 1,94,000
Capital on April 01, 2018 = Capital on March 31,2019 − Additional Capital + Drawings − Profit
= 1,94,000 − 20,000 + 12,000 − 20,000 = Rs 1,66,000
Page No 5.22:
Question 27:
Show an Accounting Equation on the basis of the following transactions:
| ₹ | ||
| (i) | Sunil started business with cash | 1,50,000 |
| (ii) | Opened a Bank Account by depositing ₹ 25,000 out of cash | |
| (iii) | He sold his personal car for ₹ 50,000 and deposited the amount in the firm's Bank Account | |
| (iv) | He purchased a building and furniture for | 1,00,000 |
| (v) | He purchased goods from Ram on credit | 50,000 |
| (vi) | He paid cartage | 500 |
| (vii) | He sold to Shyam on credit goods costing ₹ 6,000 for | 9,000 |
| (viii) | Received rent from tenants | 1,000 |
| (ix) | Received security deposit from tenants | 1,500 |
| (x) | Purchased stationery for cash | 100 |
| (xi) | Invested in shares (personal) | 50,000 |
| (xii) | Received interest in cash | 200 |
| (xiii) | Introduced fresh capital | 25,000 |
| (xiv) | Goods destroyed by fire | 500 |
Answer:
|
|
Transactions |
Assets |
|
Liabilities |
+ |
Capital |
||||||||||||
|
Cash (Rs) |
+ | Bank (Rs) |
+ |
Building and Furniture (Rs) |
+ |
Stock (Rs) |
+ |
Debtors (Rs) |
|
|
= |
Creditors (Rs) |
+ |
Security Deposits (Rs) |
|
(Rs) |
||
|
(i) |
Sunil started business with Cash Rs 1,50,000. |
1,50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,50,000 |
||
|
|
|
1,50,000 |
|
|
|
|
|
|
|
|
= |
|
|
|
|
1,50,000 |
||
| (ii) | Opened Bank Account by depositing Rs 25,000 from cash | – 25,000 | 25,000 | |||||||||||||||
| 1,25,000 | + | 25,000 | 1,50,000 | |||||||||||||||
| (iii) | Sold personal car for Rs 50,000 and deposited money in Bank A/c | 50,000 | ||||||||||||||||