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Question No 18 Chapter No 4
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18. Show the effect of the following transaction on accounting equation:
| (i) | Sukhbir started the business with a bank balance |
| (ii) | Taxes collected from the following the customer Rs 15,000 |
| (iii) | Bank charges Rs 1,000 |
| (iv) | Collected taxes deposited with the government Rs 12,000 |
| (v) | Income tax paid by cheque Rs 9,000 |
| (vi) | Life insurance premium paid in cash Rs 2,000 |
The solution of Question No 18 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | |
| Bank | +cash | Taxes collected | |||
| i | Commenced business with the bank | 70,000 | – | 70,000 | |
| 70,000 | – | 70,000 | |||
| ii | Tax collected from customer | +15,000 | +15,000 | – | |
| 30,000 | + 15,000 | 15,000 | 70,000 | ||
| iii | Bank charges | -1,000 | – | -1,000 | |
| 69,000 | + 15,000 | 15,000 | 69,000 | ||
| iv | Taxes deposited with Government | -12,000 | -12,000 | ||
| 69,000 | + 3,000 | +3,000 | 69,000 | ||
| v | Income tax paid by cheque | -9,000 | -9,000 | ||
| 60,000 | + 3,000 | 3,000 | 60,000 | ||
| vi | Life Insurance Premium | -2,000 | -2,000 | ||
| Total | 60,000 | + 1,000 | 3,000 | 58,000 | |
Answer: –
Assets = 60,000 + 1,000 = 61,000/-
Capital = 58,000/-
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Liabilities = 3,000/-
Liabilities +Capital
58,000 + 3,000 = 61,000/-
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
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Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
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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
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Chapter No. 17 – Financial Statements – (Without Adjustments)
Chapter No. 18 – Financial Statements – (With Adjustments)
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