Question No 14 Chapter No 4
14. Show the accounting equation from the following transaction:
| (i) | Tina commenced business with cash Rs 50,000 |
| (ii) | Purchased goods for cash Rs 20,000 and on credit Rs 30,000 |
| (iii) | Sold goods for cash Rs 40,000 (coating Rs 30,000) |
| (iv) | Rent paid Rs 5,000 |
| (v) | Brought furniture Rs 15,000 on credit |
| (vi) | Brought refrigerator for personal use Rs 4,000 |
| (vii) | Purchased building for cash Rs 20,000 |
| (viii) | Wages outstanding Rs 2,000 |
The solution of Question No 14 Chapter No 4: –
| S. No. | Particulars | Assets |
Liabilities | Capital | |||
| Cash | + Ad. Rent | +Stock |
+Building |
Creditor + out.wages | |||
| i | Commenced business with cash | 50,000 | – | – | 50,000 | ||
| 50,000 | – | – | 50,000 | ||||
| ii | Purchased goods cash and on credit | -20,000 | +50,000 | +30,000 | – | ||
| 17,600 | +50,000 | +30,000 | 50,000 | ||||
| iii | Sold goods on cash | +40,000 | -30,000 | – | +10,000 | ||
| 70,000 | +20,000 | +30,000 | 60,000 | ||||
| iv | Rent paid | -5,000 | -5,000 | ||||
| 65,000 | +20,000 | 30,000 | 55,000 | ||||
| v | Bought furniture on credit | +15,000 | +15,000 | – | |||
| 65,000 | +20,000 | +15,000 | 45,000 | 55,000 | |||
| vi | Brought refrigerator for personal use | -5,000 | -5,000 | ||||
| 60,000 | +20,000 | +15,000 | 45,000 | 50,000 | |||
| vii | Purchased building for cash | -20,000 | + 20,000 | ||||
| 41,000 | +20,000 | +15,000 | + 20,000 | 45,000 | 51,000 | ||
| viii | Wages outstanding | – | +2,000 | -2,000 | |||
| Total | 41,000 | +20,000 | +15,000 | + 20,000 |
45,000+ 2,000 | 49,000 | |
Answer: –
Assets = 41,000 + 20,000 + 15,000 + 20,000 = 96,000/-
Capital = 49,000/-
Liabilities = 45,000 + 2,000 = 47,000/-
Liabilities +Capital
47,000 + 49,000= 96,000/-
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)
Chapter No. 18 – Financial Statements – (With Adjustments)
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