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Question No 13 Chapter No 5 – T.S. Grewal 11 Class

Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019

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Question No 13 Chapter No 5

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13 Show the accounting Equation on the basis of the following transaction and present a balance sheet on the last new equation balance:

(i) Raj Started business with cash 70,000
(ii)  Purchased goods on credit 14,000
(iii) Withdrew for private use 1,700
(iv) Goods purchased for cash 10,000
(v) Paid wages 300
(vi) Paid to Creditors 10,000
(vii) Sold goods on credit for 15,000
(viii) Sold goods for cash (cost price was Rs 3,000) 4,000
(ix) Purchased furniture for 500

Solution of Question No 13 Chapter No 5: –

Question No 13 Chapter No 5 – T.S. Grewal 11 Class - Explained with Animated Examples

 

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S. No. ParticularsAssets
Liabilities
Capital
+Cash+Stock+Debtors+Fur.
+Creditors
(i)Raj Started business with cash 70,000

+70,000

    

+70,000

  70,000    +70,000
(ii)Purchased goods on credit 14,000 +14,000  +14,000 
  70,000+14,000  14,000+70,000
(iii)Withdrew for private use 1,700

-1,700

    

-1,700

  68,30014,000  14,000+68,300
(iv)Goods purchased for cash 10,000-10,000+10,000    
  58,300+24,000  14,000+68,300
(v)Paid wages 300-300    -300
  58,000+24,000  14,000+68,000
(vi)Paid to Creditors 10,000-10,000   -10,000 
  48,000+24,000  4,000+68,000
(vii)Sold goods on credit for 15,000 -15,000+15,000   
  48,000+9,000+15,000 4,000+68,000
(viii)Sold goods for cash (cost price was Rs 3,000) 4,000+4,000-3,000   +1,000
  52,000+6,000+15,000 4,000+69,000
(ix)Purchased furniture for 500-500  +500  
 Total 51,500+6,000+15,000+5004,000+69,000

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Answer: –

Assets: – Cash 51,500 + + Stock 6,000 + Debtors 15,000 + Furniture 500 = 73,000/-
Liabilities: – Creditors 4,000  =  4,000/-
Capital = 69,000/-
Liabilities  +Capital
4,000 + 69,000 = 73,000/-

Explanation of All Transactions with images: –

This is not a part of the solution, So you don’t have to write it in the exam. So why we explained if it is not needed. Because This explanation will help you to understand all transactions with logic so don’t need to remember all the transactions but just understand and remember the logic use behind it.

Transaction No. 1 

Transaction No. 1 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 1 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

As we discuss in the previous topic, A owner and a business both have a separate identity in the eye of law. So, the business will be treated as an Artificial Person and anything invested by the owner into the business will be treated as capital.
So, In this transaction, as shown in the above image owner investing her cash into the business, this will be treated as capital of the business. The business receiving an asset i.e. cash.

Transaction No. 2

Transaction No. 2 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 2 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

In this transaction, as shown in the above image two accounts are involved Stock (Purchase) and Creditor

  • Stock:- Because business receiving goods.
  • Creditor: – Because Businesses bought goods on credit, they did not pay anything. But it has to pay in the future. so that’s why Seller becomes our creditor.

Transaction No. 3

Transaction No. 3 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 3 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

In this transaction, as shown in the above image three accounts are involved i.e. one is cash and another is capital.

  • Cash a/c: – payment is made in cash.
  • Capital a/c:-  cash withdrawal by the owner

Transaction No. 4

Transaction No. 4 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 4 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

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In this transaction, as shown in the above image two accounts are involved i.e. Stock(Purchase) and Cash:

  • Stock a/c (Purchase):- Because business receiving goods.
  • Cash a/c: – Because business paying due amount in cash.

Transaction No. 5

Transaction No. 5 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 5 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

In this transaction, as shown in the above image two accounts are involved i.e. cash and capital

  • Cash A/c: – Because business cash goes out of the business.
  • Capital a/c:- because business gets services from its workers and paid them for it. So these is expenses for the business. “ All expenses and losses are deducted from the amount of capital.

Transaction No. 6

Transaction No. 6 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 6 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

In this transaction, as shown in the above image two accounts are involved i.e. Cash and Creditors.

  • Cash a/c:- Because payment made to creditors.
  • Creditors a/c: – Because, Due amount paid to creditors.

Transaction No. 7

Transaction No. 7 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 7 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

In this transaction, as shown in the above image two accounts are involved i.e. Stock(Sale) and Debtors:

  • Stock a/c (Sale):- Because of business giving(selling) its goods.
  • Debtors (Sohan): – Because the Business sold goods on credit, the Customer did not pay anything. That’s why he has to pay in the future to us, so that’s why Shyam becomes our Debtors.

Note: The cost of goods sold is not given So, we treat it as no profit and no loss.

Transaction No. 8

Transaction No. 8 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 8 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

In this transaction, as shown in the above image two accounts are involved i.e. Stock(Sale), Cash and Capital(Profit):

  • Stock a/c (Sale):- Because of business giving(selling) its goods.
  • Cash: – Because Business received cash from the customer.
  • Capital(Profit): Because the owner has right on all profit of the business so the amount of the profit will be added in the capital a/c. (Profit = sale price – cost price) 4,000-3,000 = 1,000(Profit)

Transaction No. 9

Transaction No. 9 Question No.13 - Chapter No.5- T.S. Grewal +1 Book 2019
Transaction No. 9 Question No.13 – Chapter No.5- T.S. Grewal +1 Book 2019

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In this transaction, as shown in the above image two accounts are involved i.e. Furniture and Cash:

  • Furniture a/c (Purchase):- Because business receiving Furniture.
  • Cash a/c: – Because the business transaction is not clear about the payment so it assumed that it is paid in cash.

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T.S. Grewal’s Double Entry Book Keeping (Class +1) – Solution

Check out T.S. Grewal’s +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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