Question No 18 Chapter No 4

Question No 18 Chapter No 4

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. ParticularsAssets
LiabilitiesCapital
Bank+cashTaxes collected
iCommenced business with the bank70,000 70,000
  70,000 70,000
iiTax collected from customer +15,000+15,000
  30,000+ 15,000 15,00070,000
iiiBank charges-1,000 -1,000
  69,000+ 15,00015,00069,000
ivTaxes deposited with Government -12,000-12,000 
  69,000+ 3,000+3,00069,000
vIncome tax paid by cheque-9,000  -9,000
  60,000+ 3,0003,00060,000
viInterest given to prop -2,000 -2,000
 Total 60,000+ 1,000
3,00058,000


Answer: –

Assets =
60,000 + 1,000     = 61,000/-

Capital = 58,000/-

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. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

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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