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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question No 8 Chapter No 4
8. Show the accounting equation on the basis of the following transaction:
| (i) | Archna started business with cash Rs 50,000, stock Rs 25,000 and furniture Rs 15,000 |
| (ii) | Goods coating Rs 13,000 sold for 16,000 on credit |
| (iii) | Purchased goods on credit Rs 35,000 |
| (iv) | Depreciate furniture by Rs 2,000 |
| (v) | Bad debts are written off Rs 4,500 |
| (vi) | Cash received Rs 6,400 from customer and allowed him to discount Rs 100 |
| (vii) | Bad debts recovered Rs 2,500 |
| (viii) | Cash paid to creditor Rs 14,600 and discount received Rs 400 |
| S. No. | Particulars | Assets | Liabilities | Capital | ||
|---|---|---|---|---|---|---|
| Cash | +Stock | + furniture +Debtors |
Creditor | |||
| 1 | Commenced business with cash, Stock and furniture | 50,000 | +25,000 | +15,000 | - | 90,000 |
| 50,000 | +25,000 | +15,000 | - | 90,000 | ||
| 2 | Goods sold no credit at profit | - 13,000 | + 16,000 | +3,000 | ||
| 50,000 | 12,000 | +15,000 +16,000 |
- | 93,000 | ||
| 3 | Purchased goods on credit | - | +35,000 | + 35,000 | ||
| 50,000 | +47,000 | +15,000 +16,000 |
+ 35,000 | 93,000 | ||
| 4 | Depreciate furniture | - | -2,000 | -2,000 | ||
| 50,000 | +47,000 | + 13,000 +16,000 |
35,000 | 91,000 | ||
| 5 | Bad debts written off | - | - 4,500 | - 4,500 | ||
| 50,000 | +47,000 | + 13,000 +11,500 |
35,000 | 86,500 | ||
| 6 | Cash received from customer and discount allowed | +6,400 | - | -6,500 | -100 | |
| 56,400 | +47,000 | + 13,000 +5,000 |
35,000 | 86,100 | ||
| 7 | Bad debts recovered | +2,500 | - | +2,500 | ||
| 58,900 | +47,000 | + 13,000 +5,000 |
35,000 | 88,900 | ||
| 8 | Cash paid to creditors and discount received | -14,600 | -15,000 | +,400 | ||
| Total | 44,300 | +47,000 |
+13,000 +5,000 |
20,000 |
89,300 | |
Answer: -
Assets = 44,300 + 47,000 + 13,000 + 5,000 = 1,09,300/-
Capital = 89,300/-
Liabilities = 20,000/-
Liabilities +Capital
20,000+ 89,300= 1,09,300/-
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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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