# These solutions for Accounting Equationare very popular among Class 11 Commerce students for Accountancy Double Entry Book Keeping Ts Grewal  2022 Solutions for Class 11 Commerce Accountancy Chapter 5Accounting Equation’s solutions are available here with simple and proper sequence and steps with accurate explanations. Accounting Equation Solutions are handy for completing your fair notebooks on time and for preparation of exam. Everything questions and answers from the Book of Class 11 Commerce Accountancy Ts Grewal 2022, Double Entry Book Keeping, Chapter 5 are available here for absolutely free. The ad-free experience is specialty on this site’s Double Entry Book Keeping Ts Grewal 2022 Solutions. All Solutions for Class 11 Commerce Accountancy are solved by veteran, experienced and expert faculties.

#### Question 9:

Use accounting equation to show the effect of the following transactions of M/s Royal traders.
(a) Started business with cash  ` 1,20,000.
(b) Purchased goods for cash
` 10,000.

(c) Rent Received ` 5,000.

(d) Salary outstanding `2,000.

(e) Sold goods for cash (costing  ` 5,000) ` 7,000.
(f) Goods destroyed by fire
`500.

 S. No. Transactions Assets = Liabilities + Capital Cash ( `) + Stock ( `) O/s Expenses ( `) ( `) (a) Started business with cash 1,20,000 + = + 1,20,000 1,20,000 + = + 1,20,000 (b) Purchased goods for cash -10,000 +10,000 = 1,10,000 + 10,000 = + 1,20,000 (c) Rent Received +5,000 +5,000 1,15,000 + 10,000 = + 1,25,000 (d) Salary outstanding +2,000 -2,000 1,15,000 + 10,000 = 2,000 + 1,23,000 (e) Sold goods for cash (costing `5,000) ` 7,000 +7,000 -5,000 +2,000 1,22,000 + 5,000 = 2,000 + 1,25,000 (f) Goods destroyed by fire -500 = -500 1,22,000 + 4,500 = 2,000 1,24,500

 Assets = 1,22,000 + 4,500 + 18,000 = ` 1,27,000 Liabilities = ` 2,000 Capital = ` 1,24,500

#### Question 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
` 60,000.
(ii) Paid rent in advance
` 500.
(iii) Purchased goods for cash
` 30,000 and credit  ` 20,000.
(iv) Sold goods for cash
` 30,000 costing  ` 20,000.
(v) Paid salary
` 500 and salary outstanding being  ` 100.
(vi) Bought motorcycle for personal use
` 5,000.

 S. No. Transactions Assets = Liabilities + Capital Cash ( `) + Prepaid Rent ( `) + Stock ( `) Creditors ( `) + Salary outstanding ( `) ( `) (i) Commenced business with cash  ` 60,000 60,000 60,000 60,000 = 60,000 (ii) Paid Rent in Advance  ` 500 – 500 + 500 59,500 + 500 = 60,000 (iii) Purchased goods for Cash  ` 30,000 and Credit  ` 20,000 – 30,000 + 50,000 20,000 29,500 + 500 + 50,000 = 20,000 + 60, 000 (iv) Sold goods for Cash  ` 30,000 Costing  ` 20,000 30,000 + + – 20,000 10,000 (Profit) 59,500 + 500 + 30,000 = 20,000 + 70,000 (v) Paid Salary  ` 500 and Salary Outstanding being  ` 100 – 500 = – 500 100 – 100 59,000 + 500 + 30,000 = 20,000 + 100 + 69,400 (vi) Brought motorcycle for personal use  ` 5,000 – 5000 = – 5000 (Drawings) 54,000 + 500 + 30,000 = 20,000 + 100 + 64,400

 Assets = 54,000 + 500 + 30,000 = ` 84,500 Liabilities = 20,000 + 100 = ` 20,100 Capital = 64,400

 Balance Sheet Liabilities Amount ( `) Assets Amount ( `) Capital 64,400 Cash 54,000 Creditors 20,000 Prepaid Rent 500 Salary Outstanding 100 Stock 30,000 85,500 85,500

#### Question 11:

Show the effect of the following transactions and also prepare a Balance Sheet:
(i) Started business with cash
` 60,000.
` 2,000.
(iii) Accrued interest
` 500.
` 1,000.
(v) Amount withdrawn
` 5,000.

 S. No. Transaction Assets = Liabilities + Capital Cash ( `) + Accrued Interest ( `) = Advance Commission ( `) ( `) (i) Started business with Cash  ` 60,000 60,000 = 60,000 60,000 = 60,000 (ii) Rent Received  ` 2,000 2,000 = 2,000 (Income) 62,000 = 62,000 (iii) Accrued Interest  ` 500 500 = 500 (Income) 62,000 + 500 = 62,500 (iv) Commission received in advance  ` 1,000 1,000 = 1,000 63,000 + 500 = 1,000 + 62,500 (v) Amount withdrawn  ` 5,000 – 5,000 = – 5,000 58,000 + 500 = 1,000 + 57,500

 Balance Sheet Liabilities Amount ( `) Assets Amount ( `) Capital 57,500 Cash 58,000 Advance Commission 1,000 Accrued Interest 500 58,500 58,500

#### Question 12:

Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash
`50,000.
(ii) Paid into bank
`10,000.
(iii) Purchased goods for cash
`20,000 and credit  `30,000.
(iv) Sold goods for cash
`40,000 costing  `30,000.
(v) Rent paid
`500.
(vi) Rent outstanding
`100.
(vii) Bought furniture
`5,000 on credit.
(viii) Bought refrigerator for personal use
`5,000.
(ix) Purchased motorcycle for cash
`20,000.
Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.

 S. No. Transaction Assets = Liabilities + Capital Cash ( `) + Bank ( `) + Stock ( `) + Furniture ( `) + Motor Cycle ( `) = Creditors ( `) + Outstanding Rent ( `) ( `) (i) Commenced business with cash  ` 50,000 50,000 50,000 50,000 = 50,000 (ii) Paid in to bank  ` 10,000 – 10,000 + 10,000 40,000 + 10,000 = 50,000 (iii) Purchased goods for Cash  ` 20,000 and Credit  ` 30,000 –20,000 + 20,000 30,000 30,000 20,000 + 10,000 + 50,000 = 30,000 + 50,000 (iv) Sold goods for Cash  ` 40,000 Costing  ` 30,000 40,000 – 30,000 = 10,000 (Expense) 60,000 + 10,000 + 20,000 = 30,000 + 60,000 (v) Rent paid  ` 500 – 500 = – 500 (Expense) 59,500 + 10,000 + 20,000 = 30,000 + 59,500 (vi) Rent Outstanding  ` 100 100 + – 100 (Expense) 59,500 + 10,000 + 20,000 = 30,000 + 100 + 59,400 (vii) Bought furniture  ` 5,000 on credit 5,000 = 5,000 59,500 + 10,000 + 20,000 + 5,000 = 35,000 + 100 + 59,400 (viii) Bought refrigerator for personal use  ` 5,000 – 5,000 = – 5,000 (Drawings) 54,500 + 10,000 + 20,000 + 5,000 = 35,000 + 100 + 54,400 (ix) Purchased motorcycle for cash – 20,000 + 20,000 34,500 + 10,000 + 20,000 + 5,000 + 20,000 = 35,000 + 100 + 54,400

 Balance Sheet Liabilities Amount ( `) Assets Amount ( `) Capital 54,400 Cash 34,500 Creditors 35,000 Bank 10,000 Rent Outstanding 100 Stock 20,000 Furniture 5,000 Motor Cycle 20,000 89,500 89,500

Class : 11th  Ts grewal solution 2022-2023

Chapter 5: Accounting equation

Click below for More solutions

#### 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