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. 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 Interest given to prop -2,000 -2,000 Total 60,000 + 1,000 3,000 58,000

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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## 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)