Page No 5.20:
Question 11:
Show the effect of the following
transactions and also prepare a Balance Sheet:
(i) Started business with cash `
60,000.
(ii) Rent received ` 2,000.
(iii) Accrued interest ` 500.
(iv) Commission received in advance `
1,000.
(v) Amount withdrawn ` 5,000.
Answer:
|
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Amount withdrawn ` 5,000 |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 |
|
|
|
|
|
Page No 5.20:
Question 12:
Prove that the Accounting Equation
is satisfied in all the following transactions of Sameer
Goel:
(i) Started business with cash `
10,000.
(ii) Paid rent in advance ` 300.
(iii) Purchased goods for cash `
5,000 and credit ` 2,000.
(iv) Sold goods for cash ` 8,000 costing `
4,000.
(v) Paid salary ` 450 and salary outstanding
being ` 100.
(vi) Bought motorcycle for personal use `
3,000.
Answer:
|
S. No. |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||||
|
Cash ( `) |
+ |
Prepaid Rent ( `) |
+ |
Stock ( `) |
= |
Creditors ( `) |
+ |
Outstanding Salary ( `) |
|
( `) |
||
|
(i) |
Started business with Cash ` 10,000 |
10,000 |
|
|
|
|
|
|
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
|
= |
|
|
|
|
10,000 |
|
(ii) |
Paid Rent in Advance ` 300 |
– 300 |
|
300 |
|
|
|
|
|
|
|
|
|
|
|
9,700 |
+ |
300 |
|
|
= |
|
|
|
|
10,000 |
|
(iii) |
Purchased goods for Cash ` 5,000 and credit ` 2,000 |
– 5,000 |
+ |
|
+ |
5,000 |
= |
2,000 |
|
|
|
|
|
|
|
|
|
|
|
2,000 |
= |
|
|
|
|
|
|
|
|
4,700 |
+ |
300 |
+ |
7,000 |
= |
2,000 |
|
|
+ |
10, 000 |
|
(iv) |
Sold goods for Cash ` 8,000 Costing ` 4,000 |
8,000 |
|
|
|
– 4,000 |
|
|
|
|
|
4,000 (Profit) |
|
|
|
12,700 |
+ |
300 |
+ |
3,000 |
= |
2,000 |
|
|
+ |
14,000 |
|
(v) |
Paid Salary ` 450 and Salary outstanding being ` 100 |
– 450 |
|
|
|
|
= |
|
|
|
|
– 450 (Expense) |
|
|
|
|
|
|
|
|
|
|
|
100 |
|
– 100 (Expense) |
|
|
|
12,250 |
+ |
300 |
+ |
3,000 |
= |
2,000 |
+ |
100 |
+ |
13,450 |
|
(vi) |
Brought motorcycle for personal use ` 3,000 |
– 3,000 |
|
|
|
|
= |
|
|
|
|
– 3,000 (Drawings) |
|
|
|
9,250 |
+ |
300 |
+ |
3,000 |
= |
2,000 |
+ |
100 |
+ |
10,450 |
|
Assets |
= |
|
9,250 + 300 + 3,000 |
|
|
= |
` |
12,550 |
|
Liabilities |
= |
|
2,000 + 100 |
|
|
= |
` |
2,100 |
|
Capital |
= |
|
10,450 |
Page No 5.20:
Question 13:
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.
Answer:
|
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 |
|
|
|
|
|
Page No 5.20:
Question 14:
Prepare an Accounting Equation from
the following:
(i) Started business with cash `
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.
Answer:
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
Page No 5.21:
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.
Answer:
|
|
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 |