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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Raghunath had the following transactions in an accounting year:
Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.
Accounting Equation: Assets = Liabilities + Capital
| S.No. | Transaction | Assets (₹) | Liabilities (₹) | Capital (₹) | |||||
|---|---|---|---|---|---|---|---|---|---|
| Cash | Bank | Stock | Furniture | Motor Cycle | Creditors | O/s Rent | Capital | ||
| (i) | Commenced business with cash ₹50,000 | +50,000 | – | – | – | – | – | – | +50,000 |
| Balance | 50,000 | – | – | – | – | – | – | 50,000 | |
| (ii) | Paid into bank ₹10,000 | −10,000 | +10,000 | – | – | – | – | – | – |
| Balance | 40,000 | 10,000 | – | – | – | – | – | 50,000 | |
| (iii) | Purchased goods: cash ₹20,000 + credit ₹30,000 | −20,000 | – | +50,000 | – | – | +30,000 | – | – |
| Balance | 20,000 | 10,000 | 50,000 | – | – | 30,000 | – | 50,000 | |
| (iv) | Sold goods (cost ₹30,000) for cash ₹40,000 (Profit ₹10,000) | +40,000 | – | −30,000 | – | – | – | – | +10,000 |
| Balance | 60,000 | 10,000 | 20,000 | – | – | 30,000 | – | 60,000 | |
| (v) | Rent paid ₹500 (Expense) | −500 | – | – | – | – | – | – | −500 |
| Balance | 59,500 | 10,000 | 20,000 | – | – | 30,000 | – | 59,500 | |
| (vi) | Rent outstanding ₹100 (Expense accrued) | – | – | – | – | – | – | +100 | −100 |
| Balance | 59,500 | 10,000 | 20,000 | – | – | 30,000 | 100 | 59,400 | |
| (vii) | Bought furniture ₹5,000 on credit | – | – | – | +5,000 | – | +5,000 | – | – |
| Balance | 59,500 | 10,000 | 20,000 | 5,000 | – | 35,000 | 100 | 59,400 | |
| (viii) | Refrigerator for personal use ₹5,000 (Drawings) | −5,000 | – | – | – | – | – | – | −5,000 |
| Balance | 54,500 | 10,000 | 20,000 | 5,000 | – | 35,000 | 100 | 54,400 | |
| (ix) | Purchased motorcycle for cash ₹20,000 | −20,000 | – | – | – | +20,000 | – | – | – |
| Balance | 34,500 | 10,000 | 20,000 | 5,000 | 20,000 | 35,000 | 100 | 54,400 | |
| Total Assets = ₹34,500+₹10,000+₹20,000+₹5,000+₹20,000 = ₹89,500 | L+C = ₹35,100+₹54,400 = ₹89,500 | ||||||||
Assets (₹89,500) = Liabilities (₹35,100) + Capital (₹54,400) ✓
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capital | 54,400 | Cash | 34,500 |
| Creditors | 35,000 | Bank | 10,000 |
| Rent Outstanding | 100 | Stock | 20,000 |
| Furniture | 5,000 | ||
| Motor Cycle | 20,000 | ||
| Total | 89,500 | Total | 89,500 |
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.12 - Accounting Equation and Balance Sheet (Raghunath)", 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 11 Chapter 5 Q.12 - Accounting Equation and Balance Sheet (Raghunath)" instantly.
Solution to Q.1 of Chapter 5 Accounting Equation, T.S. Grewal Double Entry Book Keeping Class 11 2025-2026.
Solution to Q.2 of Chapter 5 Accounting Equation, T.S. Grewal Double Entry Book Keeping Class 11 2025-2026.
Solution to Q.3 of Chapter 5 Accounting Equation, T.S. Grewal Double Entry Book Keeping Class 11 2025-2026.