Question No 15 Chapter No 4
15. Show the accounting equation from the following transaction:
| (i) | George started the business with cash Rs 45,000 and bank balance Rs 35,000 |
| (ii) | Purchased goods for cash Rs 20,000 and on credit Rs 10,000 |
| (iii) | Sold half of the total above goods purchased at a profit of 20% on cost. |
| (iv) | Dividend received from tata tea co. Rs 4,000 by bank draft |
| (v) | Advance received from a customer Rs 5,000 by cheque |
| (vi) | Goods destroyed by fire Rs 12,000. Insurance company admitted the claim for Rs 9,000 |
The solution of Question No 15 Chapter No 4: –
| S. No. | Particulars | Assets |
Liabilities | Capital | |||
| Cash | +Bank | +Stock |
+Insurance Co. |
Creditor+ adv. customer | |||
| i | Commenced business with cash and bank | 45,000 | +35,000 | – | 80,000 | ||
| 45,000 | +35,000 | – | 80,000 | ||||
| ii | Purchased goods on cash and on credit | -20,000 | +30,000 | +10,000 | – | ||
| 25,000 | +35,000 | +30,000 | +10,000 | 80,000 | |||
| iii | Sold goods at profit of 20% on cost | +18,000 | -15,000 | – | +3,000 | ||
| 43,000 | +35,000 | +15,000 | 10,000 | 83,000 | |||
| iv | Dividend Received | +4,000 | +4,000 | ||||
| 43,000 | +39,000 | +15,000 | 10,000 | 87,000 | |||
| v | Advance received from a customer by cheque | +5,000 | +5,000 | – | |||
| 43,000 | +44,000 | +15,000 | 10,000 + 5,000 | 87,000 | |||
| vi | Goods destroyed by fire insurance company admitted claim | -12,000 | 9,000 | -3,000 | |||
| Total | 43,000 | +44,000 |
+ 3,000 | + 9,000 |
10,000+ 5,000 | 84,000 | |
Answer: –
Assets = 43,000 + 44,000 + 3,000 + 9,000 = 99,000/-
Capital = 84,000/-
Liabilities = 10,000 + 5,000 = 15,000/-
Liabilities +Capital
15,000 + 84,000 = 99,000/-
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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