Question 1

Question No 1 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 1 Chapter No 5

What will be the effect of the following on the Accounting Equation?

Started Business with cash 45,000
Opened a bank account with a deposit of   4,500
Bought goods from M/s Sun & Co. for 11,200

The solution of Question No 1 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Bank
+Stock
+Creditors

1
Started Business with cash 45,000
45000
-
-
-
+45000

45000
-
-
-
+45000

2
Opened a bank account w

Question 2

Question No 2 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 2 Chapter No 5
2. Show the Accounting Equation for the following transactions:

Gopinath Started Business with cash of 25,000
Purchased goods from Shyam 10,000
Sold goods to Sohan costing Rs. 1800 1,500
Gopinath withdrew from business 5,000

The solution of Question No 2 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Debtors
+Creditors

1
Gopinath Started Business with cash
+25000
-
-
-
+25000

25000
-
-
-
25

Question 3

Question No 3 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 3 Chapter No 5
3. Show the Accounting Equation for the following transactions:
(i) Started business with cash Rs 50,000.
(ii) Salaries paid Rs 2,000.
(iii) Wages outstanding Rs 200.
(iv) Interest due but not paid Rs 100.
(v) Rent paid in advance Rs 150.
Solution of Question No 3 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Adv. Rent
+Wages O/s
+Interest O/s

(i)
Started business with cash Rs 50,000.
+50,000
-
-
 
+50,0

Question 4

Question No 4 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 4 Chapter No 5
4. What will be the effect of the following on the Accounting Equation?
(i) Harish Started Business with cash Rs 18,000
(ii) Purchased goods for cash Rs 5,000 and Credit 2,000
(iii) Sold goods for cash Rs 4,000(costing Rs 2,400)
(iv) Rent paid Rs 1,000 and rent outstanding Rs 200.
The solution of Question No 4 Chapter No 5: -

Subscribe to our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Creditors
+O/S Wages

(i)
Harish Started

Question 5

Question No 5 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 5 Chapter No 5
5. Prepare Accounting Equation from the following:
(i) Started business with cash Rs. 1,00,000 and Goods 20,000
(ii) Sold goods worth Rs 10,000 and 12,000
(iii) Purchased Furniture on credit for Rs 30,000
Solution of Question No 5 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Furniture
+Creditors

(i)
Started business with cash Rs. 1,00,000 and Goods 20,000
+1,00,000
+20,000
- 
-
+1,20,000

1,

Question 6

Question No 6 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 6 Chapter No 5
6. Prepare an Accounting Equation and Balance Sheet on the following basis:
(i) Ajeet started the business with cash of Rs 20,000.
(ii) He purchased Furniture for Rs 2,000.
(iii) He paid rent of Rs 200.
(iv) He purchased goods on the credit of Rs 3,000.
(v) He sold goods(cost price Rs 2,000) for Rs 5,000 on cash
Solution of Question No 6 Chapter No 5: -

Subscribe to our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Furniture
+Stock
+Cr

Question 7

Question No 7 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 7 Chapter No 5
7. Prepare an Accounting Equation from the following:(i) Started business with cash Rs 1,00,000.(ii) Purchased goods for cash Rs 20,000 and on credit Rs 30,000.(iii) Sold goods for cash costing Rs 10,000 and on credit costing Rs 15,000 both at a profit of 20 % .
Solution of Question No 7 Chapter No 5: -

Subscribe to our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Debtors
+Creditors

(i)
Gopinath Started Business with cash
+1,

Question 8

Question No 8 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 8 Chapter No 5
8. Develop an Accounting Equation from the following transactions:(i) Mohan commenced business with cash of 50,000(ii) Purchased goods for cash 30,000(iii) Purchase goods on the credit of 20,000(iv) Sold goods (costing Rs 10,000) for 12,000(v) Bought furniture on credit 2,000(vi) Paid cash to a creditors 15,000(vii) Salary paid 1,000.
Solution of Question No 8 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+St

Question 9

Question No 9 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 9 Chapter No 5
9. Prepare an Accounting Equation on the basis of the following transactions:(i) Started business with cash Rs 70,000.(ii) Credit Purchase of goods Rs 18,000(iii) Payment made to creditors in full settlement Rs 17,500(iv) Purchase of machinery for cash Rs 20,000(v) Depreciation on machinery Rs 2,000.
Solution of Question No 9 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Machine
+Creditors

(i)
Sta

Question 10

Question No 10 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 10 Chapter No 5
10. Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a balance sheet :(i) Commenced Business with cash Rs 60,000(ii) Paid rent in advance Rs 500.(iii) Purchased goods for cash Rs 30,000 and Credit 20,000(v) Paid Salary Rs 500 and Salary Outstanding Being Rs 100(vi) Bought motorcycle for personal use Rs 5,000
Solution of Question No 10 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Asse

Question 11

Question No 11 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 11 Chapter No 5
11. Show the effect of the following transactions on assets, liabilities, and capital using the Accounting Equation. Also prepare a Balance sheet:(i) Started business with cash Rs 60,000(ii) Rent received Rs 2,000(iii) Accrued interest Rs 500(iv) Commission received in advance Rs 1,000(v) Amount is withdrawn Rs 5,000
Solution of Question No 11 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Accrued Interest

Question 12

Question No 12 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 12 Chapter No 5
12. Prove that the Accounting Equation is satisfied is all the following transactions of Sameer Goel:(i) Started business with cash Rs. 10,000.(ii) Paid rent in advance Rs 300(iii) Purchased goods for cash 5,000 and credit 2,000.(iv) Sold goods for cash Rs 8,000 costing Rs 4,000.(v) Paid salary Rs 450 and salary outstanding being Rs 100.(vi) Bought motorcycle for personal use Rs 3,000.
Solution of Question No 12 Chapter No 5: -

Subscribe our Youtube Channel

S.

Question 13

Question No 13 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 13 Chapter No 5
13 Show the accounting Equation on the basis of the following transaction and present a balance sheet on the last new equation balance:
(i) Raj Started business with cash 70,000(ii)  Purchased goods on credit 14,000(iii) Withdrew for private use 1,700(iv) Goods purchased for cash 10,000(v) Paid wages 300(vi) Paid to Creditors 10,000(vii) Sold goods on credit for 15,000(viii) Sold goods for cash (cost price was Rs 3,000) 4,000(ix) Purchased furniture for 500
Solution

Question 14

Question No 14 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 14 Chapter No 5
14 Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash Rs 50,000.(ii) Paid into Bank Rs 10,000(iii) Purchased goods for cash Rs 20,000 and credit Rs 30000.(iv) Sold goods for cash Rs 40,000 costing Rs 30,000(v) Paid rent Rs 500.(vi) Rent outstanding Rs 100(vii) Bought furniture Rs 5,000 on credit.(viii) Bought refrigerator for personal use Rs 5,000(ix) Purchased Motorcycle for cash Rs 20,000
Create an Accounting Equation t

Question 15

Question No 15 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 15 Chapter No 5
15. Prepare Accounting Equation from the following:(i) Started business with cash Rs. 50,000 and Goods 30,000(ii) Purchase goods for cash Rs 30,000 and on credit from Karan Rs 20,000(iii) Goods costing Rs 40,000 were sold for Rs 55,000(iv) Withdrew cash for personal use Rs 10,000(v) Rent outstanding Rs 2,000
Solution of Question No 15 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Creditors
+O/S Ren

Question 16

Question No 16 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 16 Chapter No 5
16. Show an Accounting Equation for the following Transactions:(i) D. Mahapatra Commenced business with cash Rs 50,000 and Rs. 1,00,000 by cheque, goods Rs 60,000 machinery Rs 1,00,000 and Furniture Rs 50,000.(ii) 1/3rd of the above goods sold at a profit of 10% on cost and half of the payments received in cash.(iii) Depreciation on machinery provide @ 10%(iv) Cash withdrawn for personal use Rs 10,000(v) Interest on drawings charged @ 5%(vi) Goods sold to Gupta for R

Question 17

Question No 17 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 17 Chapter No 5
17. Prepare Accounting Equation from the following:(a) Started business with cash Rs 1,00,000.(b) Purchased goods for cash Rs 20,000 and on credit Rs 30,000(c) Sold goods for cash costing Rs 10,000 and on credit costing Rs 15,000 both at a profit of 20%(d) Paid salaries Rs 8,000
The solution of Question No 17 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Debtor
+Creditors

(a)
Started business wit

Question 18

Question No 18 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 18 Chapter No 5
18. Show the accounting equation on the basis of the following transactions:(a) Ram started business with cash Rs 25,000.(b) Purchased goods from Shyam Rs 10,000.(c) Sold goods to Sohan costing Rs 1,500 for Rs 1,800.
The solution of Question No 18 Chapter No 5: -

Subscribe our Youtube Channel

S. No. 
Particulars
Assets
Liabilities
Capital

Cash 
+Stock
+Debtor
+Creditors

(a)
Ram started the business with cash Rs 25,000.
+25,000
 
 
 
+25,000

25,000
-

Question 19

Question No 19 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 19 Chapter No 5

Calculation of Total Assets, Opening and
Closing Capital and Profit and loss

19. If the capital of a business is Rs 3,00,000 and liabilities are Rs 50,000, loss Rs 70,000, calculate the total assets of the business.

The solution of Question No 19 Chapter No 5: -

Subscribe our Youtube Channel

Total Assets = Total Capital + Total Liabilities

Total Capital = Capital +/- Profit/loss

Total Capital = 3,00,000-70,000

Total Capital =  2,30,000/-

Question 20

Question No 20 Chapter No 5 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 20 Chapter No 5

Calculation of Total Assets, Opening and
Closing Capital and Profit and loss

20. If total assets of a business are Rs 1,30,000 and net worth is Rs 80,000. Calculate the creditors.

The solution of Question No 20 Chapter No 5: -

Subscribe our Youtube Channel

To calculate the creditors or Liability, we can use the following formula : -

Net worth = Total Assets – Total Liabilities

Because the total assets and net worth are given.

Total Liabi

S. No.	Particulars	Assets			Liabilities	Capital
S. No.	Particulars	Cash	+Bank	+Stock	+Creditors	Capital
1	Started Business with cash 45,000	45000	-	-	-	+45000
		45000	-	-	-	+45000
2	Opened a bank account with a deposit of 4,500	-4500	+4500	-	-	-
		40500	+4500	-	-	+45000
3	Bought goods from M/s Sun & Co. for 11,200	-	-	+11200	+11,200	-
	Total	40500	+4500	+11200	+11,200	+45000

T.S. Grewal 11 Class Financial Accounting Solutions Chapter No 5 - Accounting Equation - T.S. Grewal - XI

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Question No 1 Chapter No 5 - T.S. Grewal 11 Class

The solution of Question No 1 Chapter No 5: -

Explanation of All Transactions with images: -

Transaction No. 1

Transaction No. 2

Transaction No. 3

T.S. Grewal's Double Entry Book Keeping (Class +1) - Solution

Question No 2 Chapter No 5 - T.S. Grewal 11 Class

Question No 3 Chapter No 5 - T.S. Grewal 11 Class

Question No 4 Chapter No 5 - T.S. Grewal 11 Class

Question No 5 Chapter No 5 - T.S. Grewal 11 Class

Question No 6 Chapter No 5 - T.S. Grewal 11 Class

Question No 7 Chapter No 5 - T.S. Grewal 11 Class

Question No 8 Chapter No 5 - T.S. Grewal 11 Class

Question No 9 Chapter No 5 - T.S. Grewal 11 Class

Question No 10 Chapter No 5 - T.S. Grewal 11 Class

Question No 11 Chapter No 5 - T.S. Grewal 11 Class

Question No 12 Chapter No 5 - T.S. Grewal 11 Class

Question No 13 Chapter No 5 - T.S. Grewal 11 Class

Question No 14 Chapter No 5 - T.S. Grewal 11 Class

Question No 15 Chapter No 5 - T.S. Grewal 11 Class

Question No 16 Chapter No 5 - T.S. Grewal 11 Class

Question No 17 Chapter No 5 - T.S. Grewal 11 Class

Question No 18 Chapter No 5 - T.S. Grewal 11 Class

Question No 19 Chapter No 5 - T.S. Grewal 11 Class

Question No 20 Chapter No 5 - T.S. Grewal 11 Class

Question No 21 Chapter No 5 - T.S. Grewal 11 Class

Question No 22 Chapter No 5 - T.S. Grewal 11 Class

Question No 23 Chapter No 5 - T.S. Grewal 11 Class

Question No 24 Chapter No 5 - T.S. Grewal 11 Class

Question No 25 Chapter No 5 – T.S. Grewal 11 Class

Question No 26 Chapter No 5 – T.S. Grewal 11 Class

Question No 27 Chapter No 5 – T.S. Grewal 11 Class

Question No 28 Chapter No 5 - T.S. Grewal 11 Class

Question No 29 Chapter No 5 - T.S Grewal 11 Class

Sarbjit SinghB.Com and M.Com