Question No 8 Chapter No 4 – USHA Publication 11 Class

Question No 8 Chapter No 4

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

 

The solution of Question No 8 Chapter No 4: –

 

S. No.  Particulars Assets Liabilities Capital
Cash  +Stock + furniture
+Debtors


Creditor
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/-

 

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. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

 

 

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