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11th | Accounting Equation | Question No. 13 to 16 | Ts Grewal Solution 2022-2023

Chapter 5 - Accounting Equation

Question 13:


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

( `)

+

Stock

( `)

 

Creditors

( `)

+

Outstanding

Rent 

( `)

 

 

( `)

(i)

Started business with cash  ` 50,000 and goods  ` 30,000

50,000

+

30,000

 

 

 

 

 

80,000

 

 

50,000

+

30,000

=

 

 

 

 

80,000

(ii)

Purchased goods for cash  ` 30,000 and on credit from Karan  ` 20,000

 – 30,000

 

30,000

 

 

 

 

 

 

 

 

 

 

20,000

 

20,000

 

 

 

 

 

 

20,000

+

80,000

=

20,000

 

 

+

80,000

(iii)

Goods costing  ` 40,000 were sold for  ` 55,000

55,000

 

 - 40,000

 

 

 

 

 

15,000

(Profit)

 

 

75,000

+

40,000

=

20,000

 

 

+

95,000

(iv)

Withdrew cash for personal use  ` 10,000

 – 10,000

 

 

 

 

 

 

 

– 10,000

(Drawings)

 

 

65,000

+

40,000

=

20,000

 

 

+

85,000

(v)

Rent outstanding  ` 2,000

 

 

 

 

 

 

2,000

 

– 2,000

(Expenses)

 

 

65,000

+

40,000

=

20,000

+

2,000

+

83,000

 

 

 

 

 

 

 

 

 

 

 

Question 14:


Prepare an 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.

Transaction

Assets

=

Liabilities

+

Capital

Cash

( `)

+

Stock

( `)

+

Debtors

( `)

=

Creditors

( `)

 

 

( `)

(a)

Started business with cash  ` 1,00,000

1,00,000

 

 

 

 

=

 

 

1,00,000

 

 

1,00,000

 

 

 

 

=

 

 

1,00,000

(b)

Purchased goods for cash  ` 20,000 and on credit  ` 30,000

 – 20,000

+

20,000

 

 

 

 

 

 

 

 

 

 

30,000

 

 

=

30,000

 

 

 

 

80,000

+

50,000

 

 

=

30,000

+

1,00,000

(c)

Sold goods for cash costing  ` 10,000 and on credit costing

12,000

+

– 10,000

 

 

=

 

 

2,000

 

 ` 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

(d)

Paid salaries ` 8,000

-          8,000

 

 

 

 

 

 

 

-          8,000

 

 

84,000

+

25,000

+

18,000

=

30,000

+

97,000

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

( `)

+

Bank
(
`)

+

Stock

( `)

+

Machinery

( `)

+

Furniture

( `)

+

Debtors

( `)

+

Bills Receivable

( `)

 

 

 

 

( `)

(1)

Started Business with Cash of  ` 50,000 and Bank of  ` 1,00,000

50,000

+

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

1,50,000

 

Stock  ` 60,000

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

 

 

60,000

 

Machinery  ` 1,00,000

 

 

 

 

 

 

1,00,000

 

 

 

 

 

 

 

 

 

1,00,000

 

Furniture  ` 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  ` 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  ` 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

Question 16:


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

( `)

+

Bank
(
`)

+

Building and Furniture

( `)

+

Stock

( `)

+

Debtors

( `)

 

 

=

Creditors

( `)

+

Security Deposits

( `)

 

 

( `)

(i)

Sunil started business with Cash `1,50,000.

1,50,000

 

 

 

 

 

 

 

 

 

 

 

 

1,50,000

 

 

1,50,000

 

 

 

 

 

 

 

 

=

 

 

 

 

1,50,000

(ii)

Opened Bank Account by depositing  `25,000 from cash

– 25,000

 

25,000

 

 

 

 

 

 

 

 

 

 

 

 

 

1,25,000

+

25,000

 

 

 

 

 

 

 

 

 

 

 

1,50,000

(iii)

Sold personal car for  ` 50,000 and deposited money in Bank A/c

 

 

50,000

 

 

 

 

 

 

 

 

 

 

50,000

 

 

1,25,000

+

75,000

 

 

 

 

 

 

 

 

 

 

 

2,00,000

(ii)

Building and Furniture purchased for  `1,00,000

– 1,00,000

 

 

 

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

25,000

+

75,000

+

1,00,000

 

 

 

 

 

 

 

 

 

2,00,000

(iii)

Purchased goods from Ram on credit

 

 

 

 

 

 

50,000

 

=

50,000

 

 

 

 

 

 

25,000

+

75,000

+

1,00,000

+

50,000

 

 

=

50,000

 

 

+

2,00,000

(iv)

Paid Cartage  `500

 – 500

 

 

 

 

 

 

 

 

 

 

 

 

 

– 500

(Expenses)

 

 

24,500

+

75,000

+

1,00,000

+

50,000

 

 

=

50,000

 

 

+

1,99,500

(v)

Sold to Shyam on credit goods costing  ` 6,000 for  ` 9,000

 

 

 

 

 

 

–6,000

 

9,000

 

 

 

 

 

3,000

(Profits)

 

 

24,500

+

75,000

+

1,00,000

+

44,000

+

9,000 

=

50,000

 

 

+

2,02,500

(vi)

Received rent from tenants of  ` 1,000

1,000

 

 

 

 

 

 

 

 

 

 

 

 

1,000

(Incomes)

 

 

25,500

+

75,000

+

1,00,000

+

44,000

+

9,000

=

50,000

 

 

+

2,03,500

(vii)

Received Security Deposits from tenants of  ` 1,500

  1,500

 

 

 

 

 

 

 

 

 

 

1,500

 

 

 

 

27,000

+

75,000

+

1,00,000

+

44,000

+

9,000

=

50,000

+

1,500

+

2,03,500

(viii)

Purchased Stationery for Cash of  ` 100

 – 100

 

 

 

 

 

 

 

 

 

 

 

 

 –100

(Expense)

 

 

26,900

+

75,000

+

1,00,000

+

44,000

+

9,000

=

50,000

+

1,500

+

2,03,400

(ix)

Invested in Shares (personal)  ` 50,000

 

 

- 50,000

 

 

 

 

 

 

 

 

 

 

– 50,000

(Drawings)

 

 

26,900

+

25,000

+

1,00,000

+

44,000

+

9,000

=

50,000

+

1,500

+

1,53,400

(x)

Received Interest of  ` 200 in Cash

200

 

 

 

 

 

 

 

 

 

 

 

 

200

(Income)

 

 

27,100

+

25,000

+

1,00,000

+

44,000

+

9,000

=

50,000

+

1,500

+

1,53,600

(xi)

Introduced fresh Capital of  ` 25,000

25,000

 

 

 

 

 

 

 

 

 

 

 

 

25,000

 

 

52,100

+

25,000

+

1,00,000

+

44,000

+

9,000

=

50,000

+

1,500

+

1,78,600

(xii)

Goods of  ` 500 were destroyed by fire

 

 

 

 

 

 

– 500

 

 

 

 

 

 

– 500

(Loss)

 

 

52,100

+

25,000

+

1,00,000

+

43,500

+

9,000

=

50,000

+

1,500

+

1,78,100

 

Assets

 =

52,100 + 25,000 + 1,00,000 + 43,500 + 9,000 = 2,29,600

Liabilities

=

50,000 + 1,500 = 51,500

Capital

=

1,78,100

 

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