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11th | Accounting Equation | Question No. 17 to 20 | Ts Grewal Solution 2022-2023

Chapter 5 - Accounting Equation

Question 17:


If the capital of a business is  `3,00,000 and liabilities are  ` 50,000, loss  ` 70,000, calculate the total assets of the business.

Answer:


Total Assets

=

Capital – Loss + Liabilities

 

=

3,00,000 – 70,000 + 50,000

 

=

 ` 2,80,000

Question 18:


If total assets of a business are  ` 1,30,000 and net worth is  ` 80,000, calculate the creditors.

Answer:


Creditors

=

Total Assets – Net worth

 

=

1,30,000 – 80,000

 

=

 ` 50,000

Question 19:


A commenced his cloth business on 1st April, 2021 with a capital of  `30,000. On 31st March 2022, his assets were worth  `50,000 and liabilities of  `10,000. Find out his closing capital and profits earned during the year.

Answer:


Closing Capital

=

Assets – Liabilities

 

=

50,000 – 10,000

 

=

 ` 40,000

 

Profit

=

Closing Capital – Opening Capital 

 

=

40,000 – 30,000

 

=

 ` 10,000

Question 20:


Calculate the total assets if:
(i) Capital is  ` 40,000.
(ii) Creditors are  ` 25,000.
(iii) Revenue during the period is  ` 50,000.
(iv) Expenses during the period are  ` 40,000.

Answer:


Capital after Adjustment of revenue and expenses

=

Capital + Revenue – Expenses

 

=

40,000 + 50,000 – 40,000 =  ` 50,000

 

Total Asset

=

Capital after adjustment + Creditors

 

=

50,000 + 25,000

 

=

 ` 75,000

 

Ts Grewal Solution 2022-2023

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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