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11th | Accounting Equation | Question No. 1 to 4 | Ts Grewal Solution 2022-2023

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

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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