Chapter 5 -
Accounting Equation
Question 21:
(a) A had a capital of `
75,000 on 1st April, 2021. 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 |
|
|
|
= |
` 90,000 |
|
(b) |
Capital
at the end |
= |
Capital
− Loss − Drawings |
|
|
|
= |
75,000
− 1,700 − 800 |
|
|
|
= |
` 72,500 |
|
|
Assets |
= |
Capital
at the end + Creditors for purchase of Goods |
|
|
|
= |
72,500
+ 15,000 |
|
|
|
= |
` 87,500 |
Question 22:
(a) Mohan started a business on 1st April, 2021 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, 2022 and withdrew cash ` 4,000 for personal use. What is his
capital on 31st March, 2022?
(b) Mahesh started a business with a capital of ` 15,000 on 1st April, 2021. 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, 2022?
Answer:
|
(a) Capital on March 31, 2022 |
=
|
Capital on April 01, 2021 + Profit
− Drawings |
|
|
=
|
10,000 + 5,000 − 4,000
|
|
|
=
|
` 11,000
|
|
(b)
Total Assets on March 31, 2022 |
=
|
Capital
on April 01, 2021 + Profit + Creditors
|
|
|
=
|
15,000 + 3,000 + 2,500
|
|
|
=
|
` 20,500
|
Question 23:
On 31st March, 2022, 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 During the year, the proprietor had introduced capital of `20,000 and withdrawn ` 12,000 for personal use.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, 2021.
Answer:
|
Capital
as on March 31, 2022 |
= Total Assets − External Liabilities |
|
|
= 2,00,000 − 6,000 |
|
|
= ` 1,94,000 |
|
Capital
on April 01, 2021 |
= Capital on March 31, 2022 −
Additional Capital + Drawings − Profit |
|
|
= 1,94,000 − 20,000 + 12,000 −
20,000 |
|
|
= `1,66,000 |
Question 24:
Mohan started a business on 1st April, 2021 with a capital of ` 25,000 and a loan of ` 12,500 borrowed from Shyam. During 2021-22 he had introduced additional capital of ` 12,500 and had withdrawn ` 7,500 for personal use. On 31st March, 2022 his assets were ` 75,000. Find out his capital as on 31st March, 2022 and profit made or loss incurred during the year 2021-22.
Answer:
Capital
on March 31, 2022
= Assets − Loan from Shyam
= 75,000 − 12,500
= `62,500
Profit
(or Loss) during the year 2021-22
= Capital on March 31, 2022+ Drawings
− (Additional Capital + Capital on April 01, 2021)
= 62,500 + 7,500 − (12,500 + 25,000)
= 70,000 − 37,500
= `32,500
Question 25:
Calculate the amount of External Equities as on 31st
March, 2022 in the following cases:
(i) On 31st March, 2022, total assets and capital were `15,00,000 and `10,50,000
respectively.
(ii) On 1st April, 2021, Mukesh started business with a
capital of ` 3,00,000
and a loan of ` 3,00,000
borrowed from a friend. During the year, he earned a profit of `1,50,000.
On 31st March, 2022, the total assets were `15,00,000.
(iii) On 1st April, 2021, Ramesh started business with a
capital of `
3,00,000 and a loan of `
3,00,000 borrowed from a fixed. During the year, he earned a profit of ` 1,50,000, introduced
an additional capital of `
1,80,000 and had withdrawn `
90,000 for his personal use. On 31st March, 2022 total assets were `15,00,000.
|
Capital
on March 31, 2022 |
= Assets − Loan from Shyam
|
|
|
= 75,000 − 12,500 |
|
|
= `62,500
|
|
Profit
(or Loss) during the year 2021-22 |
= Capital on March 31, 2022+ Drawings
− (Additional Capital + Capital on April 01, 2021)
|
|
|
= 62,500 + 7,500 − (12,500 + 25,000)
|
|
|
= 70,000 − 37,500
|
|
|
= `32,500
|
Calculate the amount of External Equities as on 31st
March, 2022 in the following cases:
(i) On 31st March, 2022, total assets and capital were `15,00,000 and `10,50,000 respectively.
(ii) On 1st April, 2021, Mukesh started business with a capital of ` 3,00,000 and a loan of ` 3,00,000 borrowed from a friend. During the year, he earned a profit of `1,50,000. On 31st March, 2022, the total assets were `15,00,000.
(iii) On 1st April, 2021, Ramesh started business with a capital of ` 3,00,000 and a loan of ` 3,00,000 borrowed from a fixed. During the year, he earned a profit of ` 1,50,000, introduced an additional capital of ` 1,80,000 and had withdrawn ` 90,000 for his personal use. On 31st March, 2022 total assets were `15,00,000.
Answer:
(i)
|
Total assets = `15,00,000 |
|
Capital = `10,50,000 |
|
External Equities (External
Liabilities) = Assets – Capital |
|
External Equities (External
Liabilities) = 15,00,000 – 10,50,000 |
|
External Equities (External Liabilities) = 4,50,000 |
(ii)
On 1st April, 2021
Total assets = `15,00,000
Capital = `
10,50,000
(iii)
|
Opening Capital=3,00,000 |
|
Opening External
liabilities =3,00,000 |
|
Total Closing
assets=15,00,000 |
|
Closing Capital = Opening
Capital + (Profit) + (Additional Capital) - (Drawings) Closing Capital = 3,00,000
+ 1,50,000 +1,80,000 - 90,000 Closing Capital = 5,40,000 |
|
Closing External
liabilities (External equity) = Total Closing assets - Closing Capital |
|
Closing External
liabilities (External equity) = 15,00,000 – 5,40,000 |
|
Closing External liabilities (External equity) =
9,60,000 |
|
|
Question 26:
Pranav started business on 1st April, 2021 with capital of 5,50,000. On 31st March, 2022
his total assets were 10,75,000 and liabilities were 2,92,500.
Calculate the amount by which his capital has increased as on 31st March, 2022.
Answer:
Ts Grewal Solution 2022-2023
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Chapter 5 – Accounting Equation
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