Question No 20 Chapter No 4

20. From the following transaction of Madhu Bala, prepare the accounting equation:

 (i) Commenced business with bank balance Rs 3,00,000. (ii) Purchased goods coating Rs 80,000 plus 14% CGST and SGST. (iii) Purchased goods from the other state Rs 1,00,000 plus 28% IGST. (iv) Paid telephone bill Rs 5,000 plus 9% CGST and SGST . (v) Paid lawyer’s fee Rs 30,000 and deposited 9% CGST and SGST. (vi) Sold goods coating Rs 60,000 for 75,000 plus 14% CGST and SGST. (vii) Sold goods coating Rs 40,000 for Rs 50,000in other state plus 28% IGST. (viii) Settled GST liability, if any.

The solution of Question No 20 Chapter No 4: –

 S. No. Particulars Assets Bank +Stock +Input CGST +InputSGST +InputIGST i Commenced business with cash 3,00,000 3,00,000 ii Purchased goods on credit plus CGST and SGST 14% -1,02,400 +80,000 +11,200 +11,200 1,97,600 +80,000 +11,200 +11,200 iii Purchased goods on cheque plus IGST 28% -1,28,000 +1,00,000 +28,000 69,600 +1,80,000 +11,200 +11,200 +28,000 iv Paid telephone bill plus CGST and SGST 9% -5,900 +450 +450 63,700 +1,80,000 +11,650 +11,650 +28,000 v paid to lawyer plus CGST and SGST 9% -35,400 +2,700 +2,700 28,300 +1,80,000 +14,350 +14,350 +28,000 vi Sold goods on profit plus CGST and SGST 14% +96,000 -60,000 1,24,300 1,20,000 +14,350 +14,350 +28,000 vii Sold goods on profit plus IGST 28% +64,000 -40,000 1,88,300 + 80,000 +14,350 +14,350 +28,000 viii Settled GST Liability -10,500 -10,500 -14,000 Total 188,300 + 80,000 +3,850 +3,850 +14,000

 S. No. Liabilities Capital +OutputCGST +OutputSGST +OutputIGST i – 3,00,000 – 3,00,000 ii – 3,00,000 iii – 3,00,000 iv -5,000 2,95,000 v -30,000 2,65,000 vi 10,500 10,500 +15,000 10,500 10,500 2,80,000 vii +14,000 +10,000 10,500 10,500 +14,000 2,90,000 viii -10,500 -10,500 -14,000 -4,000 – – – 2,90,000

Assets =
1,88,300 + 80,000 + 3,850 + 3,850 + 14,000 = 2,90,000/-

Capital = 2,90,000/-

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)