Chapter 5 -
Accounting Equation
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 ( `) |
+ |
Bank ( `) |
+ |
Stock ( `) |
= |
Creditors ( `) |
|
( `) |
||
|
(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 |
|
|
= |
` |
56,200 |
|
Liabilities |
= |
|
11,200 |
|
Capital |
= |
|
45,000 |
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 ( `) |
+ |
Stock ( `) |
+ |
Debtors ( `) |
|
Creditors ( `) |
|
( `) |
||
|
(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 |
|
|
= |
` |
29,700 |
|
Liabilities |
= |
` |
10,000 |
|
Capital |
= |
` |
19,700 |
Question 3:
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 ( `) |
+ |
Furniture ( `) |
+ |
Stock ( `) |
= |
|
|
( `) |
||
|
(i) |
Ajit started business ` 20,000 |
20,000 |
|
|
|
|
= |
|
|
20,000 |
|
|
|
20,000 |
|
|
|
|
= |
|
|
20,000 |
|
(ii) |
He purchased furniture for ` 2,000 |
– 2,000 |
+ |
2,000 |
|
|
= |
|
|
|
|
|
|
18,000 |
+ |
2,000 |
|
|
= |
|
|
20,000 |
|
(iii) |
He paid Rent of ` 200 |
– 200 |
|
|
|
|
= |
|
|
– 200 (expense) |
|
|
|
17,800 |
+ |
2,000 |
|
|
= |
|
|
19,800 |
|
(iv) |
He purchased goods on credit ` 3,000 |
|
|
|
|
3,000 |
= |
3,000 |
|
|
|
|
|
17,800 |
+ |
2,000 |
+ |
3,000 |
= |
3,000 |
+ |
19,800 |
|
(v) |
He sold goods (cost price ` (2,000) for ` 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 |
|
|
= |
` |
25,800 |
|
Liabilities |
= |
` |
3,000 |
|
Capital |
= |
` |
22,800 |
|
Balance Sheet |
|||
|
Liabilities |
Amount ( `) |
Assets |
Amount ( `) |
|
Capital |
22,800 |
Cash |
22,800 |
|
Creditors |
3,000 |
Furniture |
2,000 |
|
|
|
Stock |
1,000 |
|
|
25,800 |
|
25,800 |
|
|
|
|
|
Question 4:
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 ( `) |
+ |
Stock ( `) |
+ |
Furniture ( `) |
= |
Creditors ( `) |
|
( `) |
||
|
(i) |
Started business with cash ` 1,00,000 and Goods ` 20,000 |
1,00,000 |
+ |
20,000 |
|
|
= |
|
|
1,20,000 |
|
|
|
1,00,000 |
+ |
20,000 |
|
|
= |
|
|
1,20,000 |
|
(ii) |
Sold goods worth ` 10,000 for cash ` 12,000 |
12,000 |
|
– 10,000 |
|
|
= |
|
+ |
2,000 |
|
|
|
1,12,000 |
+ |
10,000 |
|
|
= |
|
|
1,22,000 |
|
(iii) |
Purchased furniture on credit for ` 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 |
|
|
= |
` |
1,52,000 |
|
Liabilities |
= |
` |
30,000 |
|
Capital |
= |
` |
1,22,000 |
Ts Grewal Solution 2022-2023
Click below for more Questions
Chapter 5 – Accounting Equation
Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 26