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11th | Accounting Equation | Question No. 21 to 24 | Ts Grewal Solution 2022-2023

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 During the year, the proprietor had introduced capital of `20,000 and withdrawn  ` 12,000 for personal use.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.

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:


Opening capital ` 5,50,000

Closing total Assets ` 10,75,000

Closing Liabilities ` 2,92,500.

 

Closing Capital = Closing total Assets - Closing Liabilities

Closing Capital =10,75,000 -2,92,500

Closing Capital = 7,82,500

Capital Increased by = 7,82,500 -5,50,000

Capital Increased by = 2,32,500

Ts Grewal Solution 2022-2023

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Chapter 5 – Accounting Equation 

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Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 26