Question No 4 Chapter No 4
4. Show the effect of the following transaction on the accounting equations and prepare a balance sheet at the end :
| (i) | Surveen commenced business with cash Rs 60,000 and Stock Rs 30,000 |
| (ii) | Purchased goods for cash Rs 30,000 and on credit Rs 15,000 |
| (iii) | Sold goods (costing Rs 16,000) for Rs 14,000 in cash |
| (iv) | Sold goods (costing Rs 12,000) for Rs 15,000 on credit |
| (v) | Goods donated for Leh Ladakh residents Rs 7,000 |
| (vi) | Goods are withdrawn by Surveen for personal use Rs 9,500 |
The solution of Question No 4 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | ||
| Cash | +Stock | +Debtors | Creditor | |||
| 1 | Commenced business with cash and bank | 60,000 | +30,000 | – | – | 90,000 |
| 60,000 | +30,000 | – | – | 90,000 | ||
| 2 | Purchased goods on cash and on credit | -30,000 | +45,000 | – | 15,000 | – |
| 30,000 | +75,000 | – | 15,000 | 90,000 | ||
| 3 | Sold goods on cash at loss | + 14,000 | – 16,000 | – | – | – 2,000 |
| 44,000 | +59,000 | 15,000 | 88,000 | |||
| 4 | Sold goods on credit at profit | – | -12,000 | +15,000 | – | + 3,000 |
| 44,000 | +46,000 | +15,000 | 15,000 | 91,000 | ||
| 5 | Goods donated | – | – 11,000 | – | – | – 11,000 |
| 86,000 | +35,000 | +15,000 | 1,21,000 | |||
| 6 | Additional capital introduced | – 7,000 | – 7,000 | |||
| 44,000 | +47,000 | +15,000 | 15,000 | 84,000 | ||
| 7 | Goods with drawn for personal use | – | – 9,500 | – 9,500 | ||
| Total | 44,000 | +30,500 |
+ 15,000 | 15,000 |
74,500 | |
Answer: –
Assets = 44,000 + 30,500 + 15,000 = 89,500/-
Capital = 74,500/-
Liabilities = 15,000/-
Liabilities +Capital
15,000+ 74,500= 89,500/-
What is Accounting Equation | Example
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)