Question No 29 Chapter No 5 - T.S Grewal 11 Class

Question No 29 Chapter No 5 - T.S Grewal

29. Draw an Accounting Equation from the following transactions: -

(i) Commenced business with cash Rs 50,000, cheque Rs 1,00,000, goods Rs 30,000, and Furniture Rs 20,000
(ii) Car, a personal asset of the proprietor, was sold for Rs 1,00,000 against a cheque which he deposited in his saving account.
(iii) An amount of Rs 50,000 was transferred from his saving account to the firm’s Bank Account.
(iv) A new car was purchased for Rs 6,00,000 for office use. It was paid by taking a loan from a bank of Rs 5,00,000 and balance by the issue of cheque from the firm’s Bank Account.
(v) Sold goods to Ajay on credit costing Rs 4,000 for Rs 5,000.
(vi) Sold goods for cash costing Rs 12,000 for 16,000.
(vii) Purchased goods for cash Rs 40,000
(viii) Purchased goods for credit Rs 20,000
(ix) Paid rent Rs 3,000 including Rs 2,000 in advance.
(x) Paid salary Rs 2,000
(xi) Sold goods costing Rs 8,000 for 10,000.
(xii) Salaries outstanding Rs 1,000
(xiii) Charge depreciation on furniture Rs 500.

The solution of Question No 29 Chapter No 5 - T.S Grewal: -

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Note: “Because we have less width so we have divided our table into two parts 1st table shows assets and 2nd table shows liabilities and capital." 

S. No.	Particulars	Assets
		Cash	+Bank	+Stock	+Furn.	+Veh.	+Dbt.	+Adv Rent
(i)	Commenced business with cash Rs 50,000, cheque Rs 1,00,000, goods Rs 30,000 and Furniture Rs 20,000	+50000	+100000	+30000	+20000
		50000	+100000	+30000	+20000
(ii)	Car, a personal asset of the proprietor, was sold for Rs 1,00,000 against a cheque which he deposited in his saving account.
		50000	+100000	+30000	+20000
(iii)	An amount of Rs 50,000 was transferred from his saving account to the firm’s bank account.		+50000
		50000	+150000	+30000	+20000
(iv)	A new car was purchased for Rs 6,00,000 for office use. It was paid by taking a loan from a bank of Rs 5,00,000 and balance by the issue of cheque from the firm’s Bank Account.		-100000			+600000
		50000	+50000	+30000	+20000	+600000
(v)	Sold goods to Ajay on credit costing Rs 4,000 for Rs 5,000.			-4000			+5000
		50000	+50000	+26000	+20000	+600000	+5000
(vi)	Sold goods for cash costing Rs 12,000 for 16,000.	+16000		-12000
		66000	+50000	+14000	+20000	+600000	+5000
(vii)	Purchased goods for cash Rs 40,000	-40000		+40000
		26000	+50000	+54000	+20000	+600000	+5000
(viii)	Purchased goods for credit Rs 20,000			+20000
		26000	+50000	+74000	+20000	+600000	+5000
(ix)	Paid rent Rs 3,000 including Rs 2,000 in advance.	-3000						+2000
		23000	+50000	+74000	+20000	+600000	+5000	+2000
(x)	Paid salary Rs 2,000	-2000
		21000	+50000	+74000	+20000	+600000	+5000	+2000
(xi)	Sold goods costing Rs 8,000 for 10,000.	+10000		-8000
		31000	+50000	+66000	+20000	+600000	+5000	+2000
(xii)	Salaries outstanding Rs 1,000
		31000	+50000	+66000	+20000	+600000	+5000	+2000
(xiii)	Charge depreciation on furniture Rs 500.				-500
		31000	+50000	+66000	+19500	+600000	+5000	+2000

 

S. No.	Particulars	Liabilities			Capital
		+ Bank Loan	+Crdt.	+ O/s Salary
(i)	Commenced business with cash Rs 50,000, cheque Rs 1,00,000, goods Rs 30,000 and Furniture Rs 20,000				+200000
					+200000
(ii)	Car, a personal asset of the proprietor, was sold for Rs 1,00,000 against a cheque that he deposited in his saving account.
					+200000
(iii)	An amount of Rs 50,000 was transferred from his saving account to the firm’s Bank Account.				+50000
					+250000
(iv)	A new car was purchased for Rs 6,00,000 for office use. It was paid by taking a loan from a bank of Rs 5,00,000 and balance by the issue of cheque from the firm’s Bank Account.	+500000
		+500000			+250000
(v)	Sold goods to Ajay on credit costing Rs 4,000 for Rs 5,000.				+1000
		+500000			+251000
(vi)	Sold goods for cash costing Rs 12,000 for 16,000.				+4000
		+500000			+255000
(vii)	Purchased goods for cash Rs 40,000
		+500000			+255000
(viii)	Purchased goods for credit Rs 20,000		+20000
		+500000	+20000		+255000
(ix)	Paid rent Rs 3,000 including Rs 2,000 in advance.				-1000
		+500000	+20000		+254000
(x)	Paid salary Rs 2,000				-2000
		+500000	+20000		+252000
(xi)	Sold goods costing Rs 8,000 for 10,000.				+2000
		+500000	+20000		+254000
(xii)	Salaries outstanding Rs 1,000			+1000	-1000
		+500000	+20000	+1000	+253000
(xiii)	Charge depreciation on furniture Rs 500.				-500
		+500000	+20000	+1000	+252500

Answer: -

Assets = Cash 31,000 + Bank 50,000 + Stock 66,000 + Furniture 19,500 + Vehicle + 6,00,000 + Debtors 5,000 + Prepaid Rent 2,000 = 7,73,500/-
Liabilities: - Bank Loan 5,00,000 + Creditors 20,000 +  Outstanding Salary 1,000 =  5,21,000/-
Capital = 2,52,500/-
Liabilities  +Capital
5,21,000 + 2,52,500 = 7,73,500/-

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T.S. Grewal's Double Entry Book Keeping (Class +1) - Solution

• Chapter No. 1 - Introduction to Accounting
• Chapter No. 2 - Basic Accounting Terms 
• Chapter No. 3 - Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
• Chapter No. 4 - Bases of Accounting
• Chapter No. 5 - Accounting Equation
• Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 7 - Origin of Transactions -  Source Documents and Preparation of Vouchers
• Chapter No. 8 - Journal
• Chapter No. 9 - Ledger
• Chapter No. 10 - Special Purpose Books I - Cash Book
• Chapter No. 11 - Special Purpose Books II - Other Books
• Chapter No. 12 - Bank Reconciliation Statement
• Chapter No. 13 - Trial Balance 
• Chapter No. 14 - Depreciation
• Chapter No. 15 - Provisions and Reserves
• Chapter No. 16 - Accounting for Bills of Exchange
• Chapter No. 17 - Rectification of Errors 
• Chapter No. 18 - Financial Statements of Sole Proprietorship
• Chapter No. 19 - Adjustments in preparation of Financial Statements 
• Chapter No. 20 - Accounts from incomplete Records - Single Entry System
• Chapter No. 21 - Computers in Accounting
• Chapter No. 22 - Accounting Software - Tally

Check out T.S. Grewal's +1 Book 2019 @ Official Website of Sultan Chand Publication