Question No 9 Chapter No 4
9. Show the accounting equation on the basis of the following transaction and present a balance sheet:
| Rs | ||
| (i) | Mohan commenced business with | 70,000 |
| (ii) | Purchased goods on credit | 14,000 |
| (iii) | Withdrew for private use | 1,700 |
| (iv) | Purchased goods for cash | 10,000 |
| (v) | Paid wages | 300 |
| (vi) | Paid to creditor | 10,000 |
| (vii) | Sold goods coating Rs 12,000 on credit | 15,000 |
| (viii) | Sold goods for cash (cost price RS 3,000) | 4,000 |
The solution of Question No 9 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | ||
| Cash | +Stock | +Debtors | Creditor | |||
| 1 | Commenced business with cash, Stock and furniture | 70,000 | – | – | – | 70,000 |
| 70,000 | – | – | – | 70,000 | ||
| 2 | Purchase goods on credit | +14,000 | – | + 14,000 | – | |
| 70,000 | + 14,000 | – | 14,000 | 70,000 | ||
| 3 | Withdrew for private use | – 1,700 | – | – | – 1,700 | |
| 68,300 | +14,000 | – | 14,000 | 68,300 | ||
| 4 | Purchased goods on cash | -10,000 | +10,000 | – | ||
| 58,300 | +24,000 | 14,000 | 68,300 | |||
| 5 | Paid wages | – 300 | – | – | – 300 | |
| 48,000 | +24,000 | 14,000 | 68,000 | |||
| 6 | Paid creditor | -10,000 | – 10,000 | -100 | ||
| 48,000 | +24,000 | 4,000 | 68,000 | |||
| 7 | Sold goods on credit at profit | – 12,000 | +15,000 | – | +3,000 | |
| 48,000 | +12,000 | + 15,000 | 4,000 | 71,000 | ||
| 8 | Sold goods on cash at profit | +4,000 | -3,000 | +1,000 | ||
| Total | 52,000 | +9,000 |
+15,000 |
4,000 |
72,000 | |
Answer: –
Assets = 52,000 + 9,000 + 15,000 = 76,000/-
Capital = 72,000/-
Liabilities = 4,000/-
Liabilities +Capital
4,000+ 72,000= 76,000/-
What is Accounting Equation | Example
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Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
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Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
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)
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Chapter No. 18 – Financial Statements – (With Adjustments)