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11th | Accounting Equation | Question No. 25 and 26 | Ts Grewal Solution 2022-2023

Chapter 5 - Accounting Equation

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 During the year, he earned a profit of ` 1,50,000, introduced an additional capital of ` 1,80,000 and had withdrawn ` 90,000 for his personal use.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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