Question No 16 Chapter No 4
16. Show the effect of the following transaction on accounting equation:
| (i) | Samuel commenced business with cash Rs 60,000 and furniture Rs 30,000 |
| (ii) | Purchased goods on credit from Manisha Rs 45,000 |
| (iii) | Sold 2/3rd of the above goods at a profit of 25% on sale. Half the payment received immediately |
| (iv) | 2/3rd of the amount due to Manisha was paid after deducting 4% cash discount. |
| (v) | Accepted a bill drawn by Manisha Rs 20,000 |
| (vi) | Depreciate furniture by 10% |
The solution of Question No 16 Chapter No 4: –
| S. No. | Particulars | Assets |
Liabilities | Capital | |||
| Cash | +Furniture | +Stock |
+Debtors |
Creditor+. B/p | |||
| i | Commenced business with cash and furniture | 60,000 | +30,000 | – | 90,000 | ||
| 45,000 | +35,000 | – | 90,000 | ||||
| ii | Purchased goods on credit | – | +45,000 | +45,000 | – | ||
| 60,000 | + 30,000 | +45,000 | +45,000 | 90,000 | |||
| iii | Sold goods at a profit and half payment received | +20,000 | -30,000 | +20,000 | – | +10,000 | |
| 80,000 | + 30,000 | +15,000 | +20,000 | +45,000 | 1,00,000 | ||
| iv | Cash paid to creditor after deducting discount | -14,400 | -15,000 | +600 | |||
| 65,600 | + 30,000 | +15,000 | +20,000 | +30,000 | 1,00,600 | ||
| v | Accepted a bill drawn by creditor | -20,000 +20,000 |
– | ||||
| 65,600 | + 30,000 | +15,000 | +20,000 | 10,000 + 20,000 | 1,00,600 | ||
| vi | Depreciate furniture | -3,000 | -3,000 | ||||
| Total | 65,600 | + 27,000 |
+15,000 | + 20,000 |
10,000+ 20,000 | 97,600 | |
Answer: –
Assets = 65,600 + 27,000 + 15,000 + 20,000 = 1,27,600/-
Capital = 97,600/-
Liabilities = 10,000 + 20000 = 30,000/-
Liabilities +Capital
30,000 + 97,600 = 1,27,600/-
To understand more about Vouchers and Transaction please check out following links: –
What is Accounting Equation | Example
Thanks, Please Like and share with your friends
Advertisement-X
Comment if you have any question.
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)
Advertisement-X
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)
Advertisement-X
.