Question No 10 Chapter No 4 - USHA Publication 11 Class

Question No 10 Chapter No 4

Table of Contents

10. Show the accounting equation on the basis of the following transaction:

		Rs
(i)	Harish started business with cash	15,000
(ii)	Purchased goods on credit	7,000
(iii)	Purchased furniture for cash	500
(iv)	Deposited in bank	2,000
(v)	Sold goods on credit to Satish(coating Rs 4,000) at	6,000
(vi)	Withdrew cash fort private use	200
(vii)	Paid salaries	300

The solution of Question No 10 Chapter No 4: –

S. No.	Particulars	Assets					Liabilities	Capi tal
S. No.	Particulars	Cash	+ Stock	+ furni ture	+ Bank	+ Debtors	Creditor	Capi tal
1	Commenced business with cash, Stock and furniture	15,000	–	–			–	15,000
		15,000	–	–			–	15,000
2	Purchase goods on credit		+ 7,000	–			+ 7,000	–
		15,000	+ 7,000	–			7,000	15,000
3	Purchased furniture for cash	– 500	–	+500			–	–
		14,500	+ 7,000	500			7,000	15,000
4	Deposited into bank	-2,000		–	+2,000
		12,500	+ 7,000	+ 500	+2,000		7,000	15,000
5	Sold goods on credit at profit	–	-4,000	–		+6,000		+2,000
		12,500	+ 3,000	+ 500	+2,000	+6,000	7,000	17,000
6	Withdrew cash for private use				-200			-200
		12,500	+ 3,000	+ 500	+1,700	+6,000	7,000	16,700
7	Salaries Paid	-300					–	-300
	Total	12,200	+3,000	+500	+1,700	+ 6,000	7,000	16,400

Answer: –
Assets = 12,200 + 3,000 + 500 + 1,700 + 6,000 = 23,400/-

Capital = 16,400/-

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Liabilities = 7,000/-

Liabilities +Capital

7,000+ 16,400= 23,400/-

What is Accounting Equation | Example

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Also, Check out the solved question of all Chapters: –

Chapter No. 3 – Origin of Transactions

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Chapter No. 6 – Accounting for Goods and Services Tax(GST)

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Chapter No. 14 – Provisions and Reserves

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