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