Question No 3 Chapter No 4
3. Prove that the accounting equation is satisfied in all the following transaction of Suresh and prepare balance sheet at the end :
| (i) | Commenced business with cash Rs 80,000 and bank balance Rs 40,000 |
| (ii) | Cash is withdrawn from bank for office use Rs 15,000 |
| (iii) | Interest bill paid in cash Rs 9,000 |
| (iv) | Commission received by cheque Rs 21,000 |
| (v) | Cash is withdrawn from the bank for personal use Rs 11,000 |
| (vi) | Additional capital introduced Rs 24,000 |
| (vii) | Charged interest on drawings Rs 2,000 |
The solution of Question No 3 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | ||
| Cash | +Bank | |||||
| 1 | Commenced business with cash and bank | 80,000 | +40,000 | – | – | 1,20,000 |
| 80,000 | +40,000 | – | – | 1,20,000 | ||
| 2 | Cash is withdrawn from bank for office use | + 15,000 | – 15,000 | – | – | – |
| 95,000 | +25,000 | – | – | 1,20,000 | ||
| 3 | Internet bill paid in cash | – 9,000 | – | – | – 9,000 | |
| 86,000 | +25,000 | – | 1,11,000 | |||
| 4 | Commission received by cheque | – | +21,000 | – | – | + 21,000 |
| 86,000 | +46,000 | + | 1,32,000 | |||
| 5 | Cash is withdrawn from bank for personal use | – | – 11,000 | – | – | – 11,000 |
| 86,000 | +35,000 | 1,21,000 | ||||
| 6 | Additional capital introduced | + 24,000 | + 24,000 | |||
| 1,10,000 | +35,000 | 1,45,000 | ||||
| 7 | Charged interest on drawing | – | – | -2,000+2,000 |
||
| Total | 1,10,000 | +35,000 |
– | – |
+1,45,000 |
|
Answer: –
Assets = 1,10,000+ 35,000 = 1,45,000/-
Capital = 1,43,000/-
To understand more about Vouchers and Transaction please check out following links: –
What is Accounting Equation | Example
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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
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
Chapter No. 17 – Financial Statements – (Without Adjustments)
Chapter No. 18 – Financial Statements – (With Adjustments)