Page No 5.18:
Question 1:
What will be effect of the
following on the Accounting Equation?
(i) Started business with cash ` 45,000
(ii) Opened a Bank Account with a deposit of ` 4,500
(iii) Bought goods from M\s. Sun & Co. for ` 11,200
Answer:
|
S. No.
|
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Bank ( `) |
+ |
Stock ( `) |
= |
Creditors ( `) |
|
( `) |
||
|
(i) |
Started business with cash |
45,000 |
|
|
|
|
= |
|
|
45,000 |
|
|
|
45,000 |
|
|
|
|
= |
|
|
45,000 |
|
(ii) |
Opened a Bank Account with a deposit |
– 4,500 |
+ |
4,500 |
|
|
= |
|
|
|
|
|
|
40,500 |
+ |
4,500 |
|
|
= |
|
|
45,000 |
|
(iii) |
Bought goods from M/s. Sun & Co. |
|
|
|
|
11,200 |
= |
11,200 |
|
|
|
|
|
40,500 |
+ |
4,500 |
+ |
11,200 |
= |
11,200 |
+ |
45,000 |
|
Total Assets |
= |
|
Cash + Bank + Stock |
|
|
= |
|
40,500 + 4,500 + 11,200 |
|
|
= |
` |
56,200 |
|
Liabilities |
= |
|
11,200 |
|
Capital |
= |
|
45,000 |
Page No 5.18:
Question 2:
Show the Accounting Equation for the following transactions:
|
|
|
` |
|
(i) |
Gopinath started business with cash |
25,000 |
|
(ii) |
Purchased goods from Shyam |
10,000 |
|
(iii) |
Sold goods to Sohan costing ` 1,800 |
1,500 |
|
(iv) |
Gopinath withdrew from business |
5,000 |
Answer:
|
S. No |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Stock ( `) |
+ |
Debtors ( `) |
|
Creditors ( `) |
|
( `) |
||
|
(i) |
Gopinath Started business with |
25,000 |
|
|
|
|
= |
|
|
25,000 |
|
|
|
25,000 |
|
|
|
|
= |
|
|
25,000 |
|
(ii) |
Purchased goods from Shyam |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
|
|
25,000 |
+ |
10,000 |
|
|
= |
10,000 |
+ |
25,000 |
|
(iii) |
Sold goods to Sohan |
|
|
– 1,800 |
+ |
1,500 |
= |
|
|
– 300 |
|
|
|
25,000 |
+ |
8,200 |
+ |
1,500 |
= |
10,000 |
+ |
24,700 |
|
(iv) |
Gopinath withdrew from business |
–5,000 |
|
|
|
|
= |
|
|
– 5,000 |
|
|
|
20,000 |
+ |
8,200 |
+ |
1,500 |
= |
10,000 |
+ |
19,700 |
|
Assets |
= |
|
20,000 + 8,200 + 1,500 |
|
|
= |
` |
29,700 |
|
Liabilities |
= |
` |
10,000 |
|
Capital |
= |
` |
19,700 |
Page No 5.18:
Question 3:
Show the effect of the following
transactions on the Accounting Equation:
(i) Started business with cash ` 50,000.
(ii) Salaries paid `
2,000.
(iii) Wages Outstanding ` 200.
(iv) Interest due but not paid ` 100.
(v) Rent paid in advance
` 150.
Answer:
|
S. No. |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||
|
Cash ( `) |
+ |
Advances Expenses ( `) |
= |
Outstanding Expenses ( `) |
|
( `) |
||
|
(i) |
Started business with Cash |
50,000 |
|
|
= |
|
|
50,000 |
|
|
|
50,000 |
|
|
= |
|
|
50,000 |
|
(ii) |
Salaries paid |
– 2,000 |
|
|
= |
|
|
– 2,000 (expenses) |
|
|
|
48,000 |
|
|
= |
|
|
48,000 |
|
(iii) |
Wages Outstanding |
|
|
|
= |
200 |
+ |
– 200 (expenses) |
|
|
|
4,800 |
|
|
= |
200 |
|
47,800 |
|
(iv) |
Interest due but not paid |
|
|
|
= |
100 |
+ |
– 100 (expenses) |
|
|
|
48,000 |
|
|
= |
300 |
+ |
47,700 |
|
(v) |
Rent paid in advance |
– 150 |
+ |
150 |
= |
|
|
|
|
|
|
47,850 |
+ |
150 |
= |
300 |
+ |
47,700 |
|
Assets |
= |
|
47,850 + 150 |
|
|
= |
` |
48,000 |
|
Liabilities |
= |
` |
300 |
|
Capital |
= |
` |
47,700 |
Page No 5.18:
Question 4:
What will be the effect of the
following on the Accounting Equation?
(i) Harish started business with cash ` 18,000
(ii) Purchased goods for Cash ` 5,000 and on credit `
2,000
(iii) Sold goods for cash `
4,000 (costing ` 2,400)
(iv) Rent paid ` 1,000 and rent outstanding `
200
Answer:
|
S. No. |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Stock ( `) |
= |
Creditors ( `) |
+ |
Outstanding Rent ( `) |
|
( `) |
||
|
(i) |
Harish started business with cash |
18,000 |
|
|
= |
|
|
|
|
18,000 |
|
|
|
18,000 |
|
|
= |
|
|
|
|
18,000 |
|
(ii) |
Purchased goods for Cash ` 5,000 and on credit ` 2,000 |
– 5,000 |
+ |
7,000 |
= |
2,000 |
|
|
|
|
|
|
|
13,000 |
+ |
7,000 |
= |
2,000 |
|
|
+ |
18,000 |
|
(iii) |
Sold goods for cash ` 4,000 costing ` 2,400 |
4,000 |
|
– 2,400 |
= |
|
|
|
|
1,600 (Profit) |
|
|
|
17,000 |
+ |
4,600 |
= |
2,000 |
|
|
+ |
19,600 |
|
(iv) |
Rent paid ` 1,000 and Rent Outstanding ` 200 |
– 1,000 |
|
|
= |
|
|
200 |
|
– 1,200 |
|
|
|
16,000 |
+ |
4,600 |
= |
2,000 |
+ |
200 |
+ |
18,400 |
|
Assets |
= |
|
16,000 + 4,600 |
|
|
= |
` |
20,600 |
|
Liabilities |
= |
|
2,000 + 200 |
|
|
= |
` |
2,200 |
|
Capital |
= |
` |
18,400 |
Page No 5.19:
Question 5:
Prepare Accounting Equation from
the following:
(i) Started business with cash `
1,00,000 and Goods ` 20,000.
(ii) Sold goods worth ` 10,000 for cash ` 12,000.
(iii) Purchased furniture on credit for ` 30,000.
Answer:
|
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Stock ( `) |
+ |
Furniture ( `) |
= |
Creditors ( `) |
|
( `) |
||
|
(i) |
Started business with cash ` 1,00,000 and Goods ` 20,000 |
1,00,000 |
+ |
20,000 |
|
|
= |
|
|
1,20,000 |
|
|
|
1,00,000 |
+ |
20,000 |
|
|
= |
|
|
1,20,000 |
|
(ii) |
Sold goods worth ` 10,000 for cash ` 12,000 |
12,000 |
|
– 10,000 |
|
|
= |
|
+ |
2,000 |
|
|
|
1,12,000 |
+ |
10,000 |
|
|
= |
|
|
1,22,000 |
|
(iii) |
Purchased furniture on credit for ` 30,000 |
|
|
|
|
30,000 |
= |
30,000 |
|
|
|
|
|
1,12,000 |
+ |
10,000 |
+ |
30,000 |
= |
30,000 |
+ |
1,22,000 |
|
Assets |
= |
|
1,12,000 + 10,000 + 30,000 |
|
|
= |
` |
1,52,000 |
|
Liabilities |
= |
` |
30,000 |
|
Capital |
= |
` |
1,22,000 |