Class-11th | Chapter-2 | Accounting Equation | Question No. 26 and 27 | Ts grewal solution | 2020-21

Question 26:

On 31st March, 2019, the total assets and external liabilities were  ` 2,00,000 and  ` 6,000 respectively. During the year, the proprietor had introduced capital of  ` 20,000 and withdrawn  ` 12,000 for personal use. He made a profit of  ` 20,000 during the year. Calculate the capital as on 1st April, 2018.

Capital as on March 31, 2019 = Total Assets − External Liabilities

=  2,00,000 − 6,000 =  ` 1,94,000

Capital on April 01, 2018 = Capital on March 31,2019 − Additional Capital + Drawings − Profit

= 1,94,000 − 20,000 + 12,000 − 20,000 =  ` 1,66,000

Question 27:

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