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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question No 16 Chapter No 5
16. Show an Accounting Equation for the following Transactions:
(i) D. Mahapatra Commenced business with cash Rs 50,000 and Rs. 1,00,000 by cheque, goods Rs 60,000 machinery Rs 1,00,000 and Furniture Rs 50,000.
(ii) 1/3rd of the above goods sold at a profit of 10% on cost and half of the payments received in cash.
(iii) Depreciation on machinery provide @ 10%
(iv) Cash withdrawn for personal use Rs 10,000
(v) Interest on drawings charged @ 5%
(vi) Goods sold to Gupta for Rs 10,000 and received a Bill receivable for the same amount for 3 months.
(vii) Received Rs 10,000 from Gupta against the bills Receivable on its maturity.
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Note: "Becasue we less width so we have deleted column of Particulars but you have to make it in the paper or in your note book."
| S. No. | Assets |
Liab. |
Capital | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Cash | +Bank | +Stock | +Machi. | +Furn | +Debt. |
+B/R |
|||
| (i) | +50000 | +100000 | +60000 | +100000 | +50000 | +360000 | |||
| 50000 | +100000 | +60000 | +100000 | +50000 | - | - | - | +360000 | |
| (ii) | +11000 | - | -20000 | - | - | +11000 | +2000 | ||
| 61000 | +100000 | +40000 | +100000 | +50000 | +11000 | - | - | +362000 | |
| (iii) | - | - | - | -10000 | - | - | -10000 | ||
| 61000 | +100000 | +40000 | +90000 | +50000 | +11000 | - | - | +352000 | |
| (iv) | -10000 | - | - | - | - | - | -10000 | ||
| 51000 | +100000 | +40000 | +90000 | +50000 | +11000 | - | - | +342000 | |
| (v) | - | - | - | - | - | - |
-500 +500 |
||
| 51000 | +100000 | +40000 | +90000 | +50000 | +11000 | - | - | +342000 | |
| (vi) | - | - | -10000 | - | - | - | +10000 | ||
| 51000 | +100000 | +30000 | +90000 | +50000 | +11000 | +10000 | - | +342000 | |
| (vii) | +10000 | - | - | - | - | - | -10000 | - | - |
| 61000 | +100000 | +30000 | +90000 | +50000 | +11000 | - | - | +342000 | |
Answer: -
Assets: - Cash 61,000 + Bank 1,00,000 + Stock 30,000 + Machine 90,000 + Furniture 50,000 + Debtors 11,000 = 3,42,000/-
Liabilities: - 0/-
Capital = 3,42,000/-
Liabilities +Capital
0 + 3,42,000 = 3,42,000/-
This is not a part of the solution, So you don't have to write it in the exam. So why we explained if it is not needed. Because This explanation will help you to understand all transactions with logic so don't need to remember all the transactions but just understand and remember the logic use behind it.
As we discuss in the previous topic, A owner and a business both have a separate identity in the eye of law. So, the business will be treated as an Artificial Person and anything invested by the owner into the business will be treated as capital.
So, In this transaction, as shown in the above image owner investing her cash into the business, this will be treated as capital of the business. The business receiving assets i.e. cash, bank, stock, machine, and Furniture.
In this transaction, as shown in the above image four accounts are involved i.e. Stock(Sale), Cash, Debtors and Capital(Profit):
In this transaction, as shown in the above image two accounts are involved i.e. Machine and Capital:
In this transaction, as shown in the above image two accounts are involved i.e. one is cash and another is capital.
In this transaction, as shown in the above image one accounts is involved for two times i.e. capital.
In this transaction, as shown in the above image one accounts is involved for two times i.e. capital.
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Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question No 16 Chapter No 5 - T.S. Grewal 11 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 11 Class Financial Accounting.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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