Question No 1 Chapter No 4
1. Prepare accounting equation on the basis of the following:
| (i) | Sawinder Sigh started the business with cash Rs 2,50,000 |
| (ii) | Borrowed cash Rs 40,000 from Bank |
| (iii) | Telephone bills paid in cash Rs 3,000 |
| (iv) | Saleem paid school fees of his son from the business Rs 15,000 |
| (v) | Repaid bank loan Rs 30,000 |
| (vi) | Purchased goods for cash Rs 22,000 |
| (vii) | Repaid the balance of bank loan by borrowing an equal amount from Jodhan. |
| (viii) | Provided interest on capital Rs 5,000 |
The solution of Question No 1 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | |
| Cash | +Stock | +Bank loan+ Johan |
|||
| 1 | Sawinder Started Business with cash | 2,50,000 | – | – | 2,50,000 |
| 2,50,000 | – | – | 2,50,000 | ||
| 2 | Borrowed cash from bank | +40,000 | +40,000 | – | |
| 2,90,000 | 40,000 | 2,50,000 | |||
| 3 | Telephone bills paid in cash | – 3,000 | – | – 3,000 | |
| 2,87,000 | 40,000 | +247000 | |||
| 4 | Paid school fess from business | – 15,000 | – | – | – 15,000 |
| 2,72,000 | 40,000 | 2,32,000 | |||
| 5 | Paid bank loan | – 30,000 | -30,000 | ||
| 2,42,000 | 10,000 | 2,32,000 | |||
| 6 | Purchased goods for cash | – 22,000 | +22,000 | ||
| 2,20,000 | +22,000 | 10,000 | 2,32,000 | ||
| 7 | Repaid bank loan by borrowing from Jodhan | — | – | -10,000+10,000 |
|
| 2,20,000 | +22,000 | 10,000 | 2,32,000 | ||
| 8 | Provide interest on capital | – | – | -5,000+5,000 |
|
| Total | 2,20,000 | +22,000 |
+10,000 |
+2,32,000 |
|
Answer: –
Assets = 2,20,000 + 22,000 = 2,42,000/-
Liabilities = 10,000/-
Capital = 2,32,000/-
Liabilities +Capital
10,000 + 2,32,000= 2,42,000/-
What is Accounting Equation | Example
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
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)
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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)
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Chapter No. 18 – Financial Statements – (With Adjustments)