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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question No 6 Chapter No 4
6. Arvind has the following transaction. Use accounting equation to show their effect on his assets, liabilities and capital:
| (i) | Commenced business with cash Rs 90,000 and bank balance Rs 40,000 |
| (ii) | Travelling expenses paid by cheque Rs 7,000 |
| (iii) | Salary due but not paid Rs 5,500 |
| (iv) | Rent paid for next year by cheque Rs 6,000 |
| (v) | Interest received Rs 12,000 |
| (vi) | Interest due but not received Rs 8,000 |
| (vii) | Commission received in advance for next year Rs 9,000 |
| S. No. | Particulars | Assets | Liabilities | Capital | ||
|---|---|---|---|---|---|---|
| Cash | +Stock | + prepaid rent+ Interest Accrued |
Sal.Due. +Com. Re.adv |
|||
| 1 | Commenced business with cash | 90,000 | +40,000 | - | - | 1,30,000 |
| 90,000 | +40,000 | - | - | 1,30,000 | ||
| 2 | Travelling expenses paid by cheque | - 7,500 | - | - | -7,500 | |
| 90,000 | +32,500 | - | - | 1,22,500 | ||
| 3 | Salary due but not paid | - | - | - | 5,500 | -5,500 |
| 90,000 | +26,500 | + 6,000 | 5,500 | 1,17,000 | ||
| 4 | Rent paid for next Year by cheque | - | - 6,000 | + 6,000 | - | - |
| 90,000 | +26,500 | + 6,000 | 5,500 | 1,17,000 | ||
| 5 | Interest received | +12,000 | - | - | - | +12,000 |
| 1,02,000 | +26,500 | + 6,000 | 5,500 | 1,29,000 | ||
| 6 | Interest due but not received | - | + 8,000 | - | ||
| 1,02,000 | +26,500 | +14,000 | 5,500 | 1,29,000 | ||
| 7 | Commission received in advance | +9,000 | +9,000 | |||
| Total | 1,10,000 | +26,500 |
+ 14,000 | 5,500 +9,000 |
1,29,000 | |
Answer: -
Assets = 1,10,000 + 26,500 + 6,000 + 8,000 = 1,51,500/-
Capital = 1,29,000/-
Liabilities = 5,500 + 9,000/-
Liabilities +Capital
5,500 + 9,000 + 1,29,000= 1,51,500/-
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 - Theory Base of Accounting
Chapter No. 3 - Origin of Transactions
Chapter No. 4 - Vouchers and transactions
Chapter No. 6 - Accounting for Goods and Services Tax(GST)
Chapter No. 9 - Other Subsidiary Books
Chapter No. 10 - Journal Proper
Chapter No. 11 - Trial Balance
Chapter No. 12 - Bank Reconciliation Statement
Chapter No. 14 - Provisions and Reserves
Chapter No. 15 - Bills of Exchange
Chapter No. 16 - Rectification of Errors
Chapter No. 17 - Financial Statements - (Without Adjustments)
Chapter No. 18 - Financial Statements - (With Adjustments)
Accounting & Commerce Educator
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.
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