Question No 17 Chapter No 4 – USHA Publication 11 Class

Question No 17 Chapter No 4

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.

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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: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)