Question No 11 Chapter No 4
11. Show the accounting equation on the basis of the following transaction:
| Rs | ||
| (i) | Mukesh started the business with cash | 80,000 |
| (ii) | Purchased goods from Ravi | 20,000 |
| (iii) | Goods costing Rs 10,000 sold to Ramesh for | 15,000 |
| (iv) | Withdrew Rs 4,000 for personal expenses | |
| (v) | Paid to creditor | 12,500 |
| (vi) | Received from debtors Rs 6,000 and discount allowed 500 | |
| (vii) | Received commission | 2,500 |
The solution of Question No 11 Chapter No 4: –
| S. No. | Particulars | Assets |
Liabilities | Capital | ||
| Cash | +Stock | +Debtors | Creditor | |||
| 1 | Commenced business with cash, Stock and furniture | 80,000 | – | – | 80,000 | |
| 80,000 | – | – | 80,000 | |||
| 2 | Purchase goods on credit | +20,000 | 20,000 | – | ||
| 80,000 | +20,000 | 20,000 | 80,000 | |||
| 3 | Sold goods on credit at profit | -10,000 | +15,000 | – | +5,000 | |
| 80,000 | +10,000 | + 15,000 | 20,000 | 85,000 | ||
| 4 | Withdrew cash for personal expenses | -4,000 | -4,000 | |||
| 76,000 | +10,000 | + 15,000 | 20,000 | 81,000 | ||
| 5 | Paid to creditor | -12,500 | -12,500 | |||
| 63,500 | +10,000 | + 15,000 | 7,500 | 81,000 | ||
| 6 | Received cash from debtors allowed him discount | +6,000 | -6,500 | -500 | ||
| 69,500 | +10,000 | + 8,500 | 7,500 | 80,500 | ||
| 7 | Received Commision | +2,500 | – | +,2500 | ||
| Total | 72,000 | +10,000 |
+8,500 | 7,500 |
83,000 | |
Answer: –
Assets = 72,000 + 10,000 + 8,500 = 90,500/-
Capital = 83,000/-
Liabilities = 7,500/-
Liabilities +Capital
7,500+ 83,000= 90,500/-
What is Accounting Equation | Example
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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)