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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Get complete step-by-step solutions for T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 - Chapter 5 - Accounting Equation. Study double-entry system details, practice timed problems, and verify answers directly.
Prepare an Accounting Equation from the following:
Accounting Equation: Assets = Liabilities + Capital
| S.No. | Transactions | Assets (₹) | Liabilities (₹) | Capital (₹) | ||
|---|---|---|---|---|---|---|
| Cash | Stock | Creditors | Outstanding Rent | Capital | ||
| (i) | Started business: cash ₹50,000 + goods ₹30,000 | +50,000 | +30,000 | – | – | +80,000 |
| Balance | 50,000 | 30,000 | – | – | 80,000 | |
| (ii) | Purchased goods: cash ₹30,000 + credit ₹20,000 from Karan | −30,000 | +50,000 | +20,000 | – | – |
| Balance | 20,000 | 80,000 | 20,000 | – | 80,000 | |
| (iii) | Goods (cost ₹40,000) sold for ₹55,000 cash (Profit ₹15,000) | +55,000 | −40,000 | – | – | +15,000 |
| Balance | 75,000 | 40,000 | 20,000 | – | 95,000 | |
| (iv) | Cash withdrawn for personal use ₹10,000 (Drawings) | −10,000 | – | – | – | −10,000 |
| Balance | 65,000 | 40,000 | 20,000 | – | 85,000 | |
| (v) | Rent outstanding ₹2,000 (Expense accrued) | – | – | – | +2,000 | −2,000 |
| Balance | 65,000 | 40,000 | 20,000 | 2,000 | 83,000 | |
| Total Assets = ₹65,000 + ₹40,000 = ₹1,05,000 | Liabilities = ₹20,000 + ₹2,000 = ₹22,000 | Capital = ₹83,000 | ||||
Assets (₹1,05,000) = Liabilities (₹22,000) + Capital (₹83,000) ✓
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.