Question No 17 Chapter No 4
17. Show the effect of the following transaction on accounting equation:
| (i) | Divedi stated business with cash Rs 40,000 |
| (ii) | Lent Rs 10,000 to Trivedi |
| (iii) | Interest received from Trivedi Rs 400 |
| (iv) | Borrowed Rs 25,000 from Chaturvedi. |
| (v) | Interest paid to Chaturvedi Rs 1,000 |
| (vi) | Interest given to Divedi Rs 1,500. |
The solution of Question No 17 Chapter No 4: –
| S. No. | Particulars | Assets |
Liabilities | Capital | |
| Cash | +loan to Treivedi | Creditor+. B/p | |||
| i | Commenced business with cash | 40,000 | – | 40,000 | |
| 40,000 | – | 40,000 | |||
| ii | Lent to Trivedi | -10,000 | +10,000 | – | – |
| 30,000 | + 10,000 | – | 40,000 | ||
| iii | Interest received | +400 | – | +400 | |
| 30,400 | + 10,000 | – | 40,400 | ||
| iv | Borrowed from Chaturvedi | +25,000 | 25,000 | ||
| 55,400 | + 10,000 | +25,000 | 40,400 | ||
| v | Interest paid | -1,000 | -1,000 | ||
| 54,400 | + 10,000 | 25,000 | 39,400 | ||
| vi | Interest given to prop | -3,000 | -1,500 +1,500 |
||
| Total | 54,400 | + 10,000 |
25,000 | 39,400 | |
Answer: –
Assets = 54,4000 + 10,000 = 64,400/-
Capital = 39,400/-
Liabilities = 25,000 = 25,000/-
Liabilities +Capital
25,000 + 39,400 = 64,400/-
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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