# 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

### 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

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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## 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)