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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
What will be the effect on Accounting Equation in each of the following transactions?
Accounting Equation: Assets = Liabilities + Capital
| Transactions | Assets (₹) | Liabilities (₹) | Capital (₹) | ||
|---|---|---|---|---|---|
| Cash | Bank | Stock | Creditors | Capital | |
| (i) Started business with cash ₹45,000 | +45,000 | – | – | – | +45,000 |
| Balance | 45,000 | – | – | – | 45,000 |
| (ii) Deposited into Bank ₹4,500 | −4,500 | +4,500 | – | – | – |
| Balance | 40,500 | 4,500 | – | – | 45,000 |
| (iii) Bought goods from M/s. Sun & Co. on credit ₹11,200 | – | – | +11,200 | +11,200 | – |
| Balance | 40,500 | 4,500 | 11,200 | 11,200 | 45,000 |
| Total Assets = ₹56,200 | Liabilities + Capital = ₹11,200 + ₹45,000 = ₹56,200 | ||||
Assets (₹56,200) = Liabilities (₹11,200) + Capital (₹45,000) ✓
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.
This guide covers "T.S. Grewal Class 11 Chapter 5 Q.1 - Effect on Accounting Equation", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Accounting Equation.
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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