Question No 6 Chapter No 4 – USHA Publication 11 Class

Question No 6 Chapter No 4

Question No 6 Chapter No 4

6. Arvind has the following transaction. Use accounting equation to show their effect on his assets, liabilities and capital:

(i)  Commenced business with cash Rs 90,000 and bank balance Rs 40,000
(ii) Travelling expenses paid by cheque Rs 7,000
(iii) Salary due but not paid Rs 5,500
(iv) Rent paid for next year by cheque Rs 6,000
(v)  Interest received Rs 12,000
(vi) Interest due but not received Rs 8,000
(vii) Commission received in advance for next year Rs 9,000

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The solution of Question No 6 Chapter No 4: –

 

S. No.  Particulars Assets Liabilities Capital
Cash  +Stock + prepaid rent+ Interest Accrued
Sal.Due. +Com. Re.adv

1 Commenced business with cash 90,000 +40,000 1,30,000
    90,000 +40,000 1,30,000
2 Travelling expenses paid by cheque   – 7,500 -7,500
    90,000 +32,500 1,22,500
3 Salary due but not paid 5,500 -5,500
    90,000 +26,500 + 6,000 5,500 1,17,000
4 Rent paid for next Year by cheque +12,000 – 6,000 + 6,000
    90,000 +26,500 + 6,000 5,500 1,17,000
5 Interest received +12,000 +12,000
    1,02,000 +26,500 + 6,000 5,500 1,29,000
6 Interest due but not received   + 8,000  
    1,02,000 +26,500 6,000 +8,000 5,500 1,29,000
7 Commission received in advance +9,000     +9,000  
             
  Total  1,110,00 +26,500
+ 6,000 +8,000 5,500 +9,000
1,29,000

 

Answer: –
Assets =
1,10,000 + 26,500 + 6,000 + 8,000 = 1,51,500/-

Capital = 1,29,,000/-

Liabilities = 5,500 + 9,000/-

Liabilities  +Capital

5,5000 + 9,000+ 1,29,000= 1,51,500/-

 

 

 

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