Question No 13 Chapter No 4 - USHA Publication 11 Class

Question No 13 Chapter No 4

Table of Contents

13. Give accounting equations for the following transactions of Hitesh for the year 2016-17


(a)	Started business with cash Rs 18,000
(b)	Paid rent in advance Rs 400
(c)	Purchased goods for the cash Rs 5,000 and on credit Rs 2,000
(d)	Sold goods for cash Rs 4,000 ( costing Rs 2,400)
(e)	Rent paid Rs 1,000 and rent outstanding Rs 200
(f)	Bought motorcycle for the personal use Rs 8,000
(g)	Purchased equipment for the cash Rs 500
(h)	Paid to creditors Rs 600
(i)	Depreciation on equipment Rs 25

The solution of Question No 13 Chapter No 4: –

S. No.	Particulars	Assets				Liabilities	Capital
S. No.	Particulars	Cash	+ Ad. Rent	+Stock	+equipment	Creditor	Capital
a	Commenced business with cash	18,000	–			–	18,000
		18,000	–			–	18,000
b	Rent paid in advance	-400	+400			–	–
		17,600	+400			–	18,000
c	Purchased goods on credit and cash	-5,000		+7,000		2,000	–
		12,600	+400	+ 7000		2,000	18,000
d	Sold goods at profit on the cash	+4,000		-2,400			+1,600
		16,600	+400	+ 4,600		2,000	19,600
e	Rent paid and outstanding rent paid	-1,200					-1,200
		15,400	+400	+ 4,600		2,000	18,400
f	Bought motorcycle for personal use	-8,000					-8,000
		15,400	+400	+4,600		2,000	10,400
g	Purchased equipment for cash	-500			+ 500
		6,900	+400	+4,600	+ 500	2,000	10,400
h	Paid to creators	-600				– 600
		6,300	+400	+4,600	+ 500	1,400	10,400
i	Depreciation on equipment				-25		-25
	Total	6,300	+400	+4,600	+ 475	1,400	10,375