Question No 3 Chapter No 4 – USHA Publication 11 Class

Question No 3 Chapter No 4

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(ii) Cash is withdrawn from bank for office use Rs 15,000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(v)  Cash is withdrawn from the bank for personal use Rs 11,000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

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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2 Cash is withdrawn from bank for office use + 15,000 – 15,000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5 Cash is withdrawn from bank for personal use – 11,000 – 11,000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/-

 

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