Question No 5 Chapter No 4 – USHA Publication 11 Class

Question No 5 Chapter No 4

Question No 5 Chapter No 4

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 – 2,000
    1,02,000 +20,000 + 18,000 20,000 88,000
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/-

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: –

Chapter No. 1 – Introduction

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)

 

 

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