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Question No 5 Chapter No 4
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5. Show the effect of the following transactions on the accounting equation
| (i) | Tarlok commenced business with cash Rs 1,20,000 |
| (ii) | Purchased goods on credit Rs 20,000 |
| (iii) | Purchased machinery for Rs 18,000 |
| (iv) | Sold goods (coating Rs 11,000) for Rs 13,000 |
| (v) | Sold machinery (coating Rs 15,000) for Rs 14,500 |
| (vi) | Cash paid to creditors Rs 17,000 |
The solution of Question No 5 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | ||
| Cash | +Stock | +Machinery | Creditor | |||
| 1 | Commenced business with cash | 1,20,000 | – | – | 1,20,000 | |
| 1,20,000 | – | – | 1,20,000 | |||
| 2 | Purchased goods on credit | +20,000 | – | + 20,000 | – | |
| 1,20,000 | +20,000 | – | 20,000 | 1,20,000 | ||
| 3 | Purchased machinery for cash | – 18,000 | + 18,000 | – | – | |
| 1,02,000 | +20,000 | + 18,000 | 20,000 | 1,20,000 | ||
| 4 | Sold goods at profit | +13,000 | -11,000 | – | – | + 2,000 |
| 1,15,000 | + 9,000 | + 18,000 | 20,000 | 1,22,000 | ||
| 5 | Sold machinery at loss | +14,500 | – | – 15,000 | – | – 500 |
| 1,29,500 | + 9,000 | + 3,000 | 20,000 | 1,21,500 | ||
| 6 | Cash paid to creditor | – 17,000 | – | – 17,000 | – | |
| Total | 1,12,500 | +9,000 | + 3,000 | 3,000 | 1,21,500 | |
Answer: –
Assets = 1,12,500 + 9,000 + 3,000 = 1,24,500/-
Capital = 1,21,500/-
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Liabilities = 3,000/-
Liabilities +Capital
3,000+ 1,21,500= 1,24,500/-
To understand more about Vouchers and Transaction please check out following links: –
What is Accounting Equation | Example
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
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Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
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Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 14 – Provisions and Reserves
Chapter No. 15 – Bills of Exchange
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Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)
Chapter No. 18 – Financial Statements – (With Adjustments)
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