Question 22 Chapter 3 – Unimax Publications of Class 11

Question 22 Chapter 3 – Unimax Publications of Class 11

22. Gaurav had the following transactions. Use accounting equations to show their effect his assets, liabilities and capital:
(a) Commenced business with cash Rs. 1,00,000
(b) Purchased goods Rs. 40,000 on credit
(c) Sold goods for Rs. 35,000 (costing Rs. 26,000) on credit
(d) Returned goods to supplier Rs. 10,000
(e) Salaries paid Rs. 600
(f) Salaries outstanding Rs. 120
(g) Bought machinery for Rs. 5,000 on credit
(h) Goods returned by a customer cost Rs. 13,000
(i) Bought Almirah for personal use Rs. 4,000

The solution of Question 22 Chapter 3 – Unimax Publications of Class 11:

Transactions	Assets			Liabilities			+ Capital
	Cash	+Stock	+Machinery	+Debtors	+Creditors  Machinery	Creditors	+O/S Salaries
(a) Commenced business with cash	+1,00,000							+1,00,000
(b) Purchased goods on credit	+0	+40,000				+40,000		+0
(c) Sold goods for Rs. 35,000 (costing Rs. 26,000) on credit	+0	-26,000	+0	+35,000		+0		+9,000
(d) Returned goods to supplier	+0	-10,000	+0			-10,000		+0
(e) Salaries paid	-600	+0	+0			+0		-600
(f) Salaries outstanding	+0	+0	+0			+0	+120	-120
(g) Bought machinery on credit	+0	+0	+5,000	+0	+5,000	+0	+0	+0
(h) Goods returned by a customer	+0	+13,000	+0	-13,000	+0	+0	+0	+0
(i) Bought Almirah for personal use	-4,000	+0	+0	+0	+0	+0	+0	-4,000
	95,400	+17,000	+5,000	+22,000	+5,000	+30,000	+120	+1,04,280
	1,39,400			1,39,400

BALANCE SHEET

Liabilities	Amount	Assets	Amount
Creditors	30,000	Cash	95,400
Outstanding Salaries	120	Stock	17,000
Creditors for Machinery	5,000	Debtors	22,000
Capital	1,04,280	Machinery	5,000
	1,39,400		1,39,400