Page No 5.19:
Question 6:
Prepare an Accounting Equation and
Balance Sheet on the following basis:
(i) Ajeet started business
with cash ` 20,000.
(ii) He purchased furniture for ` 2,000.
(iii) He paid rent of
` 200.
(iv) He purchase goods on credit ` 3,000.
(v) He sold goods (cost price ` 2,000) for
` 5,000 on cash.
Answer:
|
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Furniture ( `) |
+ |
Stock ( `) |
= |
|
|
( `) |
||
|
(i) |
Ajit started business ` 20,000 |
20,000 |
|
|
|
|
= |
|
|
20,000 |
|
|
|
20,000 |
|
|
|
|
= |
|
|
20,000 |
|
(ii) |
He purchased furniture for ` 2,000 |
– 2,000 |
+ |
2,000 |
|
|
= |
|
|
|
|
|
|
18,000 |
+ |
2,000 |
|
|
= |
|
|
20,000 |
|
(iii) |
He paid Rent of ` 200 |
– 200 |
|
|
|
|
= |
|
|
– 200 (expense) |
|
|
|
17,800 |
+ |
2,000 |
|
|
= |
|
|
19,800 |
|
(iv) |
He purchased goods on credit ` 3,000 |
|
|
|
|
3,000 |
= |
3,000 |
|
|
|
|
|
17,800 |
+ |
2,000 |
+ |
3,000 |
= |
3,000 |
+ |
19,800 |
|
(v) |
He sold goods (cost price ` (2,000) for ` 5,000 on cash |
5,000 |
+ |
|
+ |
–2,000 |
= |
|
|
3,000 (Profit) |
|
|
|
22,800 |
+ |
2,000 |
+ |
1,000 |
= |
3,000 |
+ |
22,800 |
|
Assets |
= |
|
22,800 + 2,000 + 1,000 |
|
||||
|
|
= |
` |
25,800 |
|
||||
|
Liabilities |
= |
` |
3,000 |
|
||||
|
Capital |
= |
` |
22,800 |
|
||||
|
Balance Sheet |
||||||||
|
Liabilities |
Amount ( `) |
Assets |
Amount ( `) |
|||||
|
Capital |
22,800 |
Cash |
22,800 |
|||||
|
Creditors |
3,000 |
Furniture |
2,000 |
|||||
|
|
|
Stock |
1,000 |
|||||
|
|
25,800 |
|
25,800 |
|||||
|
|
|
|
|
|||||
Page No 5.19:
Question 7:
Prepare an Accounting Equation from
the following:
(i) Started business with cash ` 1,00,000.
(ii) Purchased goods for cash ` 20,000
and on credit ` 30,000.
(iii) Sold goods for cash costing ` 10,000
and on credit costing `
15,000 both at a profit of 20%.
Answer:
|
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Stock ( `) |
+ |
Debtors ( `) |
= |
Creditors ( `) |
|
( `) |
||
|
(i) |
Started business with cash ` 1,00,000 |
1,00,000 |
|
|
|
|
= |
|
|
1,00,000 |
|
|
|
1,00,000 |
|
|
|
|
= |
|
|
1,00,000 |
|
(ii) |
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 |
|
(iii) |
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 |
Page No 5.19:
Question 8:
Develop an Accounting Equation from the following transactions:
|
|
|
` |
|
(i) |
Mohan commenced business with cash |
50,000 |
|
(ii) |
Purchased goods for cash |
30,000 |
|
(iii) |
Purchased
goods on credit |
20,000 |
|
(iv) |
Sold goods (costing ` 10,000) for |
12,000 |
|
(v) |
Bought furniture on credit |
2,000 |
|
(vi) |
Paid
cash to a creditor |
15,000 |
Answer:
|
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Stock ( `) |
+ |
Furniture ( `) |
= |
Creditors ( `) |
|
( `) |
||
|
(i) |
Mohan commenced business with cash |
50,000 |
|
|
|
|
= |
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
= |
|
|
50,000 |
|
(ii) |
Purchased goods for cash |
– 30,000 |
+ |
30,000 |
|
|
= |
|
|
|
|
|
|
20,000 |
+ |
30,000 |
|
|
= |
|
|
50,000 |
|
(iii) |
Purchased goods on credit |
|
|
20,000 |
|
|
= |
20,000 |
|
|
|
|
|
20,000 |
+ |
50,000 |
|
|
= |
20,000 |
+ |
50,000 |
|
(iv) |
Sold goods costing ` 10,000 for ` 12,000 |
12,000 |
+ |
– 10,000 |
|
|
= |
|
|
2,000 (profit) |
|
|
|
32,000 |
+ |
40,000 |
|
|
= |
20,000 |
+ |
52,000 |
|
(v) |
Bought furniture on credit |
|
|
|
|
2,000 |
= |
2,000 |
|
|
|
|
|
32,000 |
+ |
40,000 |
+ |
2,000 |
= |
22,000 |
+ |
52,000 |
|
(vi) |
Paid cash to a creditor |
– 15,000 |
|
|
|
|
= |
– 15,000 |
|
|
|
|
|
17,000 |
+ |
40,000 |
+ |
2,000 |
= |
7,000 |
+ |
52,000 |
|
(vii) |
Salary Paid |
– 1,000 |
|
|
|
|
= |
|
|
– 1,000 (expenses) |
|
|
|
16,000 |
+ |
40,000 |
+ |
2,000 |
= |
7,000 |
+ |
51,000 |
|
Assets |
= |
|
16,000 + 40,000 + 2,000 |
|
|
= |
` |
58,000 |
|
Liabilities |
= |
` |
7,000 |
|
Capital |
= |
` |
51,000 |
Page No 5.19:
Question 9:
Prepare an Accounting Equation on
the basis of the following transactions:
(i) Started business with cash ` 70,000.
(ii) Credit purchase of goods ` 18,000.
(iii) Payment made to creditors in full settlement `
17,500.
(iv) Purchase of machinery for cash `
20,000.
(v) Depreciation on machinery ` 2,000.
Answer:
|
S. No. |
Transaction |
Assets |
= |
Liabilities |
+ |
Capital |
||||
|
Cash ( `) |
+ |
Stock ( `) |
+ |
Machinery ( `) |
|
( `) |
|
( `) |
||
|
(i) |
Started business with Cash ` 70,000 |
70,000 |
|
|
|
|
|
|
|
70,000 |
|
|
|
70,000 |
|
|
|
|
|
|
|
70,000 |
|
(ii) |
Credit purchase of goods ` 18,000 |
|
|
18,000 |
|
|
= |
18,000 |
|
|
|
|
|
70,000 |
+ |
18,000 |
|
|
= |
18,000 |
+ |
70,000 |
|
(iii) |
Payment made to creditor ` 17,500 in full settlement |
– 17,500 |
|
|
|
|
= |
– 18,000 |
+ |
500 (Discount Received) |
|
|
|
52,500 |
+ |
18,000 |
|
|
= |
|
|
70,500 |
|
(iv) |
Purchase of Machinery for Cash ` 20,000 |
– 20,000 |
|
|
|
20,000 |
|
|
|
|
|
|
|
32,500 |
+ |
18,000 |
+ |
20,000 |
= |
|
|
70,500 |
|
(v) |
Depreciation on Machinery ` 2,000 |
|
|
|
|
– 2,000 |
|
|
|
– 2,000 (Depreciation) |
|
|
|
32,500 |
+ |
18,000 |
+ |
18,000 |
= |
|
|
68,500 |
|
Assets |
= |
|
32,500 + 18,000 + 18,000 |
|
|
= |
` |
68,500 |
|
Liabilities |
= |
|
NIL |
|
Capital |
= |
` |
68,500 |
Page No 5.19:
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.
Answer:
|
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 |
|
|
|
|
|