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#### Question 13:

Prepare an Accounting Equation from the following:
` 50,000 and goods  ` 30,000.
(ii) Purchased goods for cash  ` 30,000 and on credit from Karan
` 20,000.
(iii) Goods costing  ` 40,000 were sold for
` 55,000.
(iv) Withdrew cash for personal use  ` 10,000.
(v) Rent outstanding  ` 2,000.

 S. No. Transactions Assets = Liabilities + Capital Cash ( `) + Stock ( `) Creditors ( `) + Outstanding Rent  ( `) ( `) (i) Started business with cash  ` 50,000 and goods  ` 30,000 50,000 + 30,000 80,000 50,000 + 30,000 = 80,000 (ii) Purchased goods for cash  ` 30,000 and on credit from Karan  ` 20,000 – 30,000 30,000 20,000 20,000 20,000 + 80,000 = 20,000 + 80,000 (iii) Goods costing  ` 40,000 were sold for  ` 55,000 55,000 - 40,000 15,000 (Profit) 75,000 + 40,000 = 20,000 + 95,000 (iv) Withdrew cash for personal use  ` 10,000 – 10,000 – 10,000 (Drawings) 65,000 + 40,000 = 20,000 + 85,000 (v) Rent outstanding  ` 2,000 2,000 – 2,000 (Expenses) 65,000 + 40,000 = 20,000 + 2,000 + 83,000

#### Question 14:

Prepare an Accounting Equation from the following:
` 1,00,000.
(b) Purchased goods for cash  ` 20,000 and on credit
` 30,000.
(c) Sold goods for cash costing  ` 10,000 and on credit costing
` 15,000 both at a profit of 20%.

(d) Paid salaries ` 8,000.

 S. No. Transaction Assets = Liabilities + Capital Cash ( `) + Stock ( `) + Debtors ( `) = Creditors ( `) ( `) (a) Started business with cash  ` 1,00,000 1,00,000 = 1,00,000 1,00,000 = 1,00,000 (b) Purchased goods for cash  ` 20,000 and on credit  ` 30,000 – 20,000 + 20,000 30,000 = 30,000 80,000 + 50,000 = 30,000 + 1,00,000 (c) Sold goods for cash costing  ` 10,000 and on credit costing 12,000 + – 10,000 = 2,000 ` 15,000 both at a profit of 20% – 15,000 + 18,000 = 3,000 92,000 + 25,000 + 18,000 = 30,000 + 1,05,000 (d) Paid salaries ` 8,000 -          8,000 -          8,000 84,000 + 25,000 + 18,000 = 30,000 + 97,000

#### Question 15:

Show an Accounting Equation for the following transactions:
(i) D. Mahapatra commenced business with cash
` 50,000 and  ` 1,00,000 by cheque; goods  ` 60,000; machinery  ` 1,00,000 and furniture  ` 50,000.
(ii) 1/3rd of above goods sold at a profit of 10% on cost and half of the payment is received in cash.
(iii) Depreciation on machinery provided @ 10%.
(iv) Cash withdrawn for personal use  ` 10,000.
(v) Interest on drawings charged @ 5%.
(vi) Goods Sold to Gupta for  ` 10,000 and received a Bill Receivable for the same amount for 3 months.
(vii) Received  ` 10,000 from Gupta against the Bills Receivable on its maturity.

 Transactions Assets = Liabilities + Capital Cash ( `) + Bank ( `) + Stock ( `) + Machinery ( `) + Furniture ( `) + Debtors ( `) + Bills Receivable ( `) ( `) (1) Started Business with Cash of  ` 50,000 and Bank of  ` 1,00,000 50,000 + 1,00,000 1,50,000 Stock  ` 60,000 60,000 60,000 Machinery  ` 1,00,000 1,00,000 1,00,000 Furniture  ` 50,000 50,000 50,000 50,000 + 1,00,000 + 60,000 + 1,00,000 + 50,000 = 3,60,000 (ii) 1/3rd of above goods sold at a profit of 10% on cost, that is, 60,000 × 1/3 = 20,000 × 110% = 22,000 and half of this is received in Cash 11,000 (20,000) 11,000 2,000 (Profit) 61,000 + 1,00,000 + 40,000 + 1,00,000 + 50,000 + 11,000 = 3,62,000 (iii) Depreciate Machinery by 10% (1,00,000 × 10%) (10,000) (10,000) Expenses 61,000 + 1,00,000 + 40,000 + 90,000 + 50,000 + 11,000 = 3,52,000 (iv) Cash withdrawn for personal use (10,000) (10,000) 51,000 + 1,00,000 + 40,000 + 90,000 + 50,000 + 11,000 = 3,42,000 (v) Interest on Drawings charged @ 5% (10,000 × 5%) (500) 500 51,000 + 1,00,000 + 40,000 + 90,000 + 50,000 + 11,000 = 3,42,000 (vi) Goods Sold to Gupta for  ` 10,000 and received a Bill Receivable for the same amount. (10,000) 10,000 51,000 + 1,00,000 + 30,000 + 90,000 + 50,000 + 11,000 + 10,000 = 3,42,000 (vii) Received  ` 10,000 from Gupta against the Bill Receivable on its maturity. 10,000 (10,000) 61,000 + 1,00,000 + 30,000 + 90,000 + 50,000 + 11,000 + NIL = NIL + 3,42,000

#### Question 16:

Show an Accounting Equation on the basis of the following transactions:

 ` (i) Sunil started business with cash 1,50,000 (ii) Opened a Bank Account by depositing  `25,000 out of cash (iii) He sold his personal car for  `50,000 and deposited the amount in the firm's Bank Account (iv) He purchased a building and furniture for 1,00,000 (v) He purchased goods from Ram on credit 50,000 (vi) He paid cartage 500 (vii) He sold to Shyam on credit goods costing  ` 6,000 for 9,000 (viii) Received rent from tenants 1,000 (ix) Received security deposit from tenants 1,500 (x) Purchased stationery for cash 100 (xi) Invested in shares (personal) 50,000 (xii) Received interest in cash 200 (xiii) Introduced fresh capital 25,000 (xiv) Goods destroyed by fire 500

 Transactions Assets Liabilities + Capital Cash ( `) + Bank ( `) + Building and Furniture ( `) + Stock ( `) + Debtors ( `) = Creditors ( `) + Security Deposits ( `) ( `) (i) Sunil started business with Cash `1,50,000. 1,50,000 1,50,000 1,50,000 = 1,50,000 (ii) Opened Bank Account by depositing  `25,000 from cash – 25,000 25,000 1,25,000 + 25,000 1,50,000 (iii) Sold personal car for  ` 50,000 and deposited money in Bank A/c 50,000 50,000 1,25,000 + 75,000 2,00,000 (ii) Building and Furniture purchased for  `1,00,000 – 1,00,000 1,00,000 25,000 + 75,000 + 1,00,000 2,00,000 (iii) Purchased goods from Ram on credit 50,000 = 50,000 25,000 + 75,000 + 1,00,000 + 50,000 = 50,000 + 2,00,000 (iv) Paid Cartage  `500 – 500 – 500 (Expenses) 24,500 + 75,000 + 1,00,000 + 50,000 = 50,000 + 1,99,500 (v) Sold to Shyam on credit goods costing  ` 6,000 for  ` 9,000 –6,000 9,000 3,000 (Profits) 24,500 + 75,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 2,02,500 (vi) Received rent from tenants of  ` 1,000 1,000 1,000 (Incomes) 25,500 + 75,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 2,03,500 (vii) Received Security Deposits from tenants of  ` 1,500 1,500 1,500 27,000 + 75,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 1,500 + 2,03,500 (viii) Purchased Stationery for Cash of  ` 100 – 100 –100 (Expense) 26,900 + 75,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 1,500 + 2,03,400 (ix) Invested in Shares (personal)  ` 50,000 - 50,000 – 50,000 (Drawings) 26,900 + 25,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 1,500 + 1,53,400 (x) Received Interest of  ` 200 in Cash 200 200 (Income) 27,100 + 25,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 1,500 + 1,53,600 (xi) Introduced fresh Capital of  ` 25,000 25,000 25,000 52,100 + 25,000 + 1,00,000 + 44,000 + 9,000 = 50,000 + 1,500 + 1,78,600 (xii) Goods of  ` 500 were destroyed by fire – 500 – 500 (Loss) 52,100 + 25,000 + 1,00,000 + 43,500 + 9,000 = 50,000 + 1,500 + 1,78,100

 Assets = 52,100 + 25,000 + 1,00,000 + 43,500 + 9,000 = 2,29,600 Liabilities = 50,000 + 1,500 = 51,500 Capital = 1,78,100

Class : 11th  Ts grewal solution 2022-2023

Chapter 5: Accounting equation

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#### Question no. 1 to 4

Question no. 5 to 8

Question no. 9 to 12

Question no. 13 to 16

Question no. 17 to 20

Question no. 21 to 24

Question no. 25 And 26