Question No 8 Chapter No 4 - USHA Publication 11 Class

Question No 8 Chapter No 4

8. Show the accounting equation on the basis of the following transaction:

(i)	Archna started business with cash Rs 50,000, stock Rs 25,000 and furniture Rs 15,000
(ii)	Goods coating Rs 13,000 sold for 16,000 on credit
(iii)	Purchased goods on credit Rs 35,000
(iv)	Depreciate furniture by Rs 2,000
(v)	Bad debts are written off Rs 4,500
(vi)	Cash received Rs 6,400 from customer and allowed him to discount Rs 100
(vii)	Bad debts recovered Rs 2,500
(viii)	Cash paid to creditor Rs 14,600 and discount received Rs 400

S. No.	Particulars	Assets			Liabilities	Capital
S. No.	Particulars	Cash	+Stock	+ furniture +Debtors	Creditor	Capital
1	Commenced business with cash, Stock and furniture	50,000	+25,000	+15,000	–	90,000
		50,000	+25,000	+15,000	–	90,000
2	Goods sold no credit at profit		– 13,000	+ 16,000		+3,000
		50,000	12,000	+15,000 +16,000	–	93,000
3	Purchased goods on credit	–	+35,000		+ 35,000
		50,000	+47,000	+15,000 +16,000	+ 35,000	93,000
4	Depreciate furniture	–		-2,000		-2,000
		50,000	+47,000	+ 13,000 +16,000	35,000	91,000
5	Bad debts written off		–	– 4,500		– 4,500
		50,000	+47,000	+ 13,000 +11,500	35,000	86,500
6	Cash received from customer and discount allowed	+6,400	+2,800	-6,500		-100
		56,400	+47,000	+ 13,000 +5,000	35,000	86,100
7	Bad debts recovered	+2,500			–	+2,500
		58,900	+47,000	+ 13,000 +5,000	35,000	88,900
8	Cash paid to creditors and discount received	-14,600			-15,000	+,400
	Total	44,300	+47,000	+13,000 +5,000	20,000	89,300

Answer: –
Assets = 44,300 + 47,000 + 13,000 + 5,500 = 1,09,300/-

Capital = 89,300/-

Liabilities = 20,000/-

Liabilities +Capital

20,000+ 89,300= 1,01,900/-

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Question No 8 Chapter No 4 – USHA Publication 11 Class