Question 21 Chapter 3 – Unimax Publications of Class 11

Question 21 Chapter 3 – Unimax Publications of Class 11

21. Show the accounting equation on the basis of following transactions:
(i) Anant started business with Cash Rs. 80,000 and Stock Rs. 20,000 and Machine Rs. 45,000
(ii) Goods purchased Rs. 20,000 on credit.
(iii) Goods costing Rs. 10,000 sold for Rs. 15,000 on credit.
(iv) Purchased goods on cash Rs. 10,000.
(v) Depreciate Machine by Rs. 2,000.
(vi) Bad debts write off Rs. 4,000.
(vii) Cash received Rs. 9,500 from customer and allowed him discount Rs. 500.
(viii) Bad debts recovered Rs. 1,000.
(ix) Cash paid to creditors Rs. 19,600 for full settlement of his account.

The solution of Question 21 Chapter 3 – Unimax Publications of Class 11:

Transactions	Assets				Liabilities	+ Capital
	Cash	+Stock	+Machinery	+Debtors	Creditors
(i) Anant started business with Cash and Stock and Machine	+80,000	+20,000	+45,000			+1,45,000
(ii) Goods purchased on credit.	+0	+20,000	+0		+20,000	+0
(iii) Goods costing Rs. 10,000 sold for Rs. 15,000 on credit.	+0	-10,000	+0	+15,000	+0	+5,000
(iv) Purchased goods on cash	-10,000	+10,000	+0	+0	+0	+0
(v) Depreciate Machine	+0	+0	-2,000	+0	+0	-2,000
(vi) Bad debts write off	+0	+0	+0	-4,000	+0	-4,000
(vii) Cash received Rs. 9,500 from customer and allowed him discount	+9,500	+0	+0	-10,000	+0	-500
(viii) Bad debts recovered	+1,000	+0	+0	+0	+0	+1,000
(ix) Cash paid to creditors for full settlement of his	-19,600	+0	+0	+0	-20,000	+400
	60,900	+40,000	+43,000	+1,000	+0	+1,44,900
	1,44,900				1,44,900

BALANCE SHEET

Liabilities	Amount	Assets	Amount
Creditors	0	Cash	60,900
Capital	1,44,900	Stock	40,000
		Machinery	43,000
		Debtors	1,000
	1,44,900		1,44,900