Commerce Exam > Commerce Notes > DK Goel Solutions - Class 11 Accountancy > DK Goel Solutions: Accounting Equations
DK Goel Solutions: Accounting Equations | DK Goel Solutions - Class 11 Accountancy - Commerce PDF Download
| Download, print and study this document offline |
Please wait while the PDF view is loading
Page 1 Short Answer Question Q.1 Give two basic purposes of the accounting equation. The solution for this question is as follows: The two basic purposes of the accounting equation are. (i) The accounting equation is always equal it ensures the accuracy in the recording of a business transaction. (ii) It helps in preparation of the balance sheet. Q.2 Which of the following equations are correct? I. Assets = Capital + Liabilities II. Assets = Capital – Liabilities III. Assets = Liabilities – Capital IV. Capital = Assets – Liabilities V. Capital = Assets + Liabilities VI. Liabilities = Capital + Assets VII. Liabilities = Capital – Assets VIII. Liabilities = Assets – Capital The solution for this question is as follows: Equations I, IV, VIII are the correct. Q.3 The position of a businessman on 30th June 1994 was as follows – Cash ?5,000, Debtor ?20,000, Machinery ?60,000, Stock ?25,000, Capital ?75,000. Calculate his liabilities. The solution for this question is as follows: Liabilities = Assets- Capital Liabilities = ?5,000 + ?20,000 + ?60,000 + ?25,000 – ?75,000 = ?1,10,000 – ?75,000 = ?35,000 Page 2 Short Answer Question Q.1 Give two basic purposes of the accounting equation. The solution for this question is as follows: The two basic purposes of the accounting equation are. (i) The accounting equation is always equal it ensures the accuracy in the recording of a business transaction. (ii) It helps in preparation of the balance sheet. Q.2 Which of the following equations are correct? I. Assets = Capital + Liabilities II. Assets = Capital – Liabilities III. Assets = Liabilities – Capital IV. Capital = Assets – Liabilities V. Capital = Assets + Liabilities VI. Liabilities = Capital + Assets VII. Liabilities = Capital – Assets VIII. Liabilities = Assets – Capital The solution for this question is as follows: Equations I, IV, VIII are the correct. Q.3 The position of a businessman on 30th June 1994 was as follows – Cash ?5,000, Debtor ?20,000, Machinery ?60,000, Stock ?25,000, Capital ?75,000. Calculate his liabilities. The solution for this question is as follows: Liabilities = Assets- Capital Liabilities = ?5,000 + ?20,000 + ?60,000 + ?25,000 – ?75,000 = ?1,10,000 – ?75,000 = ?35,000 Q.4 What entry (debit or credit) would you make to (a) increase in revenue (b)decrease in expense (c) record drawing (d) record the fresh capital introduced by owner. The solution for this question is as follows: (a) Increase in revenue: Credit (b) A decrease in expense: Credit (c) Record drawing: Debit in Capital Account (d) Record the fresh capital introduced by the owner: Credit in Capital Account Q.5 If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or credit? The solution for this question is as follows: (i) A decrease in Asset will be recorded on the credit side. (ii) A Decrease in Liability will be recorded on the debit side. Q. 6 Name the transaction that will (i) Decrease the assets and decrease the capital (ii) Increase the assets and increase the liabilities (iii) Increase the assets and decrease another asset (iv) Decrease the assets and decrease the liabilities The solution for this question is as follows: (i) Decrease the assets and decrease the capital – Drawings or expenses (ii) Increase the assets and increase the liabilities – Purchase of an asset on credit (iii) Increase the assets and decrease another asset – Purchase or sale of an asset in cash (iv) Decrease the assets and decrease the liabilities – Payment of a liability Page 3 Short Answer Question Q.1 Give two basic purposes of the accounting equation. The solution for this question is as follows: The two basic purposes of the accounting equation are. (i) The accounting equation is always equal it ensures the accuracy in the recording of a business transaction. (ii) It helps in preparation of the balance sheet. Q.2 Which of the following equations are correct? I. Assets = Capital + Liabilities II. Assets = Capital – Liabilities III. Assets = Liabilities – Capital IV. Capital = Assets – Liabilities V. Capital = Assets + Liabilities VI. Liabilities = Capital + Assets VII. Liabilities = Capital – Assets VIII. Liabilities = Assets – Capital The solution for this question is as follows: Equations I, IV, VIII are the correct. Q.3 The position of a businessman on 30th June 1994 was as follows – Cash ?5,000, Debtor ?20,000, Machinery ?60,000, Stock ?25,000, Capital ?75,000. Calculate his liabilities. The solution for this question is as follows: Liabilities = Assets- Capital Liabilities = ?5,000 + ?20,000 + ?60,000 + ?25,000 – ?75,000 = ?1,10,000 – ?75,000 = ?35,000 Q.4 What entry (debit or credit) would you make to (a) increase in revenue (b)decrease in expense (c) record drawing (d) record the fresh capital introduced by owner. The solution for this question is as follows: (a) Increase in revenue: Credit (b) A decrease in expense: Credit (c) Record drawing: Debit in Capital Account (d) Record the fresh capital introduced by the owner: Credit in Capital Account Q.5 If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or credit? The solution for this question is as follows: (i) A decrease in Asset will be recorded on the credit side. (ii) A Decrease in Liability will be recorded on the debit side. Q. 6 Name the transaction that will (i) Decrease the assets and decrease the capital (ii) Increase the assets and increase the liabilities (iii) Increase the assets and decrease another asset (iv) Decrease the assets and decrease the liabilities The solution for this question is as follows: (i) Decrease the assets and decrease the capital – Drawings or expenses (ii) Increase the assets and increase the liabilities – Purchase of an asset on credit (iii) Increase the assets and decrease another asset – Purchase or sale of an asset in cash (iv) Decrease the assets and decrease the liabilities – Payment of a liability Q.7 What will be the effect of the following on the accounting equation- (i) Purchased goods for ?20,000 form Mahesh on credit (ii) Sold goods to Suresh costing ?8,000 for ?10,000 in cash (iii) Paid wages ?500 (iv) Withdrew in cash for private use ?2,000 (v) Paid to creditors ?2,000 The solution for this question is as follows: (i) + Stock + Creditors (ii) +Cash – Stock + Capital (iii) – Cash – Capital (iv) – Cash – Capital (v) – Cash – Creditor Q.8 If the total asset of a business is ?2,00,000 and the net worth (capital) is ?1,50,000. Calculate creditors. The solution for this question is as follows: Creditor (Liabilities)= Assets – Capital = ?2,00,000- ?1,50,000 = ?50,000 Q.9 A business on 1st April 2011 with a capital of ?5,00,000. On 31st March 2012, his assets were worth ?7,80,000 and liabilities ?70,000. Find out his closing capital and profits earned during the year. The solution for this question is as follows: Closing Capital= Closing Assets-Closing liabilities = 7,80,000 – ?70,000 = ? 7,10,000 Profit = Closing Capital – Opening Capital ?7,10,000- ? 5,00,000= ?2,10,000 Page 4 Short Answer Question Q.1 Give two basic purposes of the accounting equation. The solution for this question is as follows: The two basic purposes of the accounting equation are. (i) The accounting equation is always equal it ensures the accuracy in the recording of a business transaction. (ii) It helps in preparation of the balance sheet. Q.2 Which of the following equations are correct? I. Assets = Capital + Liabilities II. Assets = Capital – Liabilities III. Assets = Liabilities – Capital IV. Capital = Assets – Liabilities V. Capital = Assets + Liabilities VI. Liabilities = Capital + Assets VII. Liabilities = Capital – Assets VIII. Liabilities = Assets – Capital The solution for this question is as follows: Equations I, IV, VIII are the correct. Q.3 The position of a businessman on 30th June 1994 was as follows – Cash ?5,000, Debtor ?20,000, Machinery ?60,000, Stock ?25,000, Capital ?75,000. Calculate his liabilities. The solution for this question is as follows: Liabilities = Assets- Capital Liabilities = ?5,000 + ?20,000 + ?60,000 + ?25,000 – ?75,000 = ?1,10,000 – ?75,000 = ?35,000 Q.4 What entry (debit or credit) would you make to (a) increase in revenue (b)decrease in expense (c) record drawing (d) record the fresh capital introduced by owner. The solution for this question is as follows: (a) Increase in revenue: Credit (b) A decrease in expense: Credit (c) Record drawing: Debit in Capital Account (d) Record the fresh capital introduced by the owner: Credit in Capital Account Q.5 If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or credit? The solution for this question is as follows: (i) A decrease in Asset will be recorded on the credit side. (ii) A Decrease in Liability will be recorded on the debit side. Q. 6 Name the transaction that will (i) Decrease the assets and decrease the capital (ii) Increase the assets and increase the liabilities (iii) Increase the assets and decrease another asset (iv) Decrease the assets and decrease the liabilities The solution for this question is as follows: (i) Decrease the assets and decrease the capital – Drawings or expenses (ii) Increase the assets and increase the liabilities – Purchase of an asset on credit (iii) Increase the assets and decrease another asset – Purchase or sale of an asset in cash (iv) Decrease the assets and decrease the liabilities – Payment of a liability Q.7 What will be the effect of the following on the accounting equation- (i) Purchased goods for ?20,000 form Mahesh on credit (ii) Sold goods to Suresh costing ?8,000 for ?10,000 in cash (iii) Paid wages ?500 (iv) Withdrew in cash for private use ?2,000 (v) Paid to creditors ?2,000 The solution for this question is as follows: (i) + Stock + Creditors (ii) +Cash – Stock + Capital (iii) – Cash – Capital (iv) – Cash – Capital (v) – Cash – Creditor Q.8 If the total asset of a business is ?2,00,000 and the net worth (capital) is ?1,50,000. Calculate creditors. The solution for this question is as follows: Creditor (Liabilities)= Assets – Capital = ?2,00,000- ?1,50,000 = ?50,000 Q.9 A business on 1st April 2011 with a capital of ?5,00,000. On 31st March 2012, his assets were worth ?7,80,000 and liabilities ?70,000. Find out his closing capital and profits earned during the year. The solution for this question is as follows: Closing Capital= Closing Assets-Closing liabilities = 7,80,000 – ?70,000 = ? 7,10,000 Profit = Closing Capital – Opening Capital ?7,10,000- ? 5,00,000= ?2,10,000 Q.10 On which side will the increase in the following account be recorded? Also, mention the nature of the account. 1. Cash 5. Proprietor’s Account 2. Machinery 6. Rent Received 3. Debtor 7. Salary Paid 4. Creditor 8. Interest Received The solution for this question is as follows: Properties Accounts Nature Cash Machinery Debtor Creditor Proprietor’s Account Rent Received Salary Paid Interest Received Debit Debit Debit Credit Credit Credit Debit Credit Asset Asset Asset Liability Capital Income Expenses Income Question 11 On which side will the increase in the following account be recorded? Also, mention the nature of the account. 1. Furniture 5. Salary Outstanding 2. Bank 6. Subash- a customer 3. Proprietor’s Account 4. Salary Paid The solution for this question is as follows: Properties Accounts Nature Furniture Bank Proprietor’s Account Salary Paid Salary Outstanding Subash- a customer Credit Credit Debit Credit Debit Credit Asset Asset Capital A/c Expenses Liability Asset Page 5 Short Answer Question Q.1 Give two basic purposes of the accounting equation. The solution for this question is as follows: The two basic purposes of the accounting equation are. (i) The accounting equation is always equal it ensures the accuracy in the recording of a business transaction. (ii) It helps in preparation of the balance sheet. Q.2 Which of the following equations are correct? I. Assets = Capital + Liabilities II. Assets = Capital – Liabilities III. Assets = Liabilities – Capital IV. Capital = Assets – Liabilities V. Capital = Assets + Liabilities VI. Liabilities = Capital + Assets VII. Liabilities = Capital – Assets VIII. Liabilities = Assets – Capital The solution for this question is as follows: Equations I, IV, VIII are the correct. Q.3 The position of a businessman on 30th June 1994 was as follows – Cash ?5,000, Debtor ?20,000, Machinery ?60,000, Stock ?25,000, Capital ?75,000. Calculate his liabilities. The solution for this question is as follows: Liabilities = Assets- Capital Liabilities = ?5,000 + ?20,000 + ?60,000 + ?25,000 – ?75,000 = ?1,10,000 – ?75,000 = ?35,000 Q.4 What entry (debit or credit) would you make to (a) increase in revenue (b)decrease in expense (c) record drawing (d) record the fresh capital introduced by owner. The solution for this question is as follows: (a) Increase in revenue: Credit (b) A decrease in expense: Credit (c) Record drawing: Debit in Capital Account (d) Record the fresh capital introduced by the owner: Credit in Capital Account Q.5 If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or credit? The solution for this question is as follows: (i) A decrease in Asset will be recorded on the credit side. (ii) A Decrease in Liability will be recorded on the debit side. Q. 6 Name the transaction that will (i) Decrease the assets and decrease the capital (ii) Increase the assets and increase the liabilities (iii) Increase the assets and decrease another asset (iv) Decrease the assets and decrease the liabilities The solution for this question is as follows: (i) Decrease the assets and decrease the capital – Drawings or expenses (ii) Increase the assets and increase the liabilities – Purchase of an asset on credit (iii) Increase the assets and decrease another asset – Purchase or sale of an asset in cash (iv) Decrease the assets and decrease the liabilities – Payment of a liability Q.7 What will be the effect of the following on the accounting equation- (i) Purchased goods for ?20,000 form Mahesh on credit (ii) Sold goods to Suresh costing ?8,000 for ?10,000 in cash (iii) Paid wages ?500 (iv) Withdrew in cash for private use ?2,000 (v) Paid to creditors ?2,000 The solution for this question is as follows: (i) + Stock + Creditors (ii) +Cash – Stock + Capital (iii) – Cash – Capital (iv) – Cash – Capital (v) – Cash – Creditor Q.8 If the total asset of a business is ?2,00,000 and the net worth (capital) is ?1,50,000. Calculate creditors. The solution for this question is as follows: Creditor (Liabilities)= Assets – Capital = ?2,00,000- ?1,50,000 = ?50,000 Q.9 A business on 1st April 2011 with a capital of ?5,00,000. On 31st March 2012, his assets were worth ?7,80,000 and liabilities ?70,000. Find out his closing capital and profits earned during the year. The solution for this question is as follows: Closing Capital= Closing Assets-Closing liabilities = 7,80,000 – ?70,000 = ? 7,10,000 Profit = Closing Capital – Opening Capital ?7,10,000- ? 5,00,000= ?2,10,000 Q.10 On which side will the increase in the following account be recorded? Also, mention the nature of the account. 1. Cash 5. Proprietor’s Account 2. Machinery 6. Rent Received 3. Debtor 7. Salary Paid 4. Creditor 8. Interest Received The solution for this question is as follows: Properties Accounts Nature Cash Machinery Debtor Creditor Proprietor’s Account Rent Received Salary Paid Interest Received Debit Debit Debit Credit Credit Credit Debit Credit Asset Asset Asset Liability Capital Income Expenses Income Question 11 On which side will the increase in the following account be recorded? Also, mention the nature of the account. 1. Furniture 5. Salary Outstanding 2. Bank 6. Subash- a customer 3. Proprietor’s Account 4. Salary Paid The solution for this question is as follows: Properties Accounts Nature Furniture Bank Proprietor’s Account Salary Paid Salary Outstanding Subash- a customer Credit Credit Debit Credit Debit Credit Asset Asset Capital A/c Expenses Liability Asset Very Short Questions Q.1 What is an accounting equation? The solution for this question is as follows: An accounting equation is an accounting formula which indicates that a company’s assets are always equal to the total of liabilities and capital. Q.2 Give fundamental accounting equation. The solution for this question is as follows: Assets = Liabilities + Capital Q.3 If the capital of a firm is ?5,00,000 and outside liabilities are ?2,00,000. Evaluate total assets of the company. The solution for this question is as follows: Total Assets ?7,00,000 Q.4 If total assets of a company are ?10,00,000 and capital is ?4,00,000. Calculate creditors The solution for this question is as follows: Creditors ?6,00,000 Q. 5 ‘X’ commenced business on April 1st 2013 with a capital of ?6,00,000. On 31st March, 2014 his assets were worth ?8,00,000 and liabilities ?50,000. Find out his closing capital and profits earned during the year. The solution for this question is as follows: Closing capital ?7,50,000, profit ?1,50,000 Q. 6 What is debit? The solution for this question is as follows: When an amount is entered on the left-hand side of an account, it is a debit and the account is said to be debited. Q.7 What is credit? The solution for this question is as follows: When an amount is entered on the right-hand side of an account, it is a credit and the account is said to be credited. Q.8 Why are the rules of credit and debit same for both capital and liabilities? The solution for this question is as follows: The rules of credit and debit are same for both capital and liabilities because the business entity concept capital is also treated as liability of a firm. Q.9 Name the side on which increase in capital is recorded. The solution for this question is as follows: Credit sideRead More
Related Exams
About this Document
|
Nov 09, 2024 Last updated |
Document Description: DK Goel Solutions: Accounting Equations for Commerce 2024 is part of DK Goel Solutions - Class 11 Accountancy preparation.
The notes and questions for DK Goel Solutions: Accounting Equations have been prepared according to the Commerce exam syllabus. Information about DK Goel Solutions: Accounting Equations covers topics
like and DK Goel Solutions: Accounting Equations Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for DK Goel Solutions: Accounting Equations.
Introduction of DK Goel Solutions: Accounting Equations in English is available as part of our DK Goel Solutions - Class 11 Accountancy
for Commerce & DK Goel Solutions: Accounting Equations in Hindi for DK Goel Solutions - Class 11 Accountancy course.
Download more important topics related with notes, lectures and mock test series for Commerce
Exam by signing up for free. Commerce: DK Goel Solutions: Accounting Equations | DK Goel Solutions - Class 11 Accountancy - Commerce
Description
Full syllabus notes, lecture & questions for DK Goel Solutions: Accounting Equations | DK Goel Solutions - Class 11 Accountancy - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for DK Goel Solutions - Class 11 Accountancy | Best notes, free PDF download
Information about DK Goel Solutions: Accounting Equations
In this doc you can find the meaning of DK Goel Solutions: Accounting Equations defined & explained in the simplest way possible. Besides explaining types of
DK Goel Solutions: Accounting Equations theory, EduRev gives you an ample number of questions to practice DK Goel Solutions: Accounting Equations tests, examples and also practice Commerce
tests
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
DK Goel Solutions: Accounting Equations | DK Goel Solutions - Class 11 Accountancy - Commerce
,Semester Notes
,Sample Paper
,video lectures
,Objective type Questions
,Free
,Exam
,study material
,Extra Questions
,Previous Year Questions with Solutions
,MCQs
,practice quizzes
,DK Goel Solutions: Accounting Equations | DK Goel Solutions - Class 11 Accountancy - Commerce
,past year papers
,ppt
,DK Goel Solutions: Accounting Equations | DK Goel Solutions - Class 11 Accountancy - Commerce
,Viva Questions
,Important questions
,mock tests for examination
,Summary
,shortcuts and tricks
;
Additional Information about DK Goel Solutions: Accounting Equations for Commerce Preparation
DK Goel Solutions: Accounting Equations Free PDF Download
The DK Goel Solutions: Accounting Equations is an invaluable resource that delves deep into the core of the Commerce exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the DK Goel Solutions: Accounting Equations now and kickstart your journey towards success in the Commerce exam.
Importance of DK Goel Solutions: Accounting Equations
The importance of DK Goel Solutions: Accounting Equations cannot be overstated, especially for Commerce aspirants.
This document holds the key to success in the Commerce exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
DK Goel Solutions: Accounting Equations Notes
DK Goel Solutions: Accounting Equations Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to DK Goel Solutions: Accounting Equations.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, DK Goel Solutions: Accounting Equations Notes on EduRev are your ultimate resource for success.
DK Goel Solutions: Accounting Equations Commerce Questions
The "DK Goel Solutions: Accounting Equations Commerce Questions" guide is a valuable resource for all aspiring students preparing for the
Commerce exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study DK Goel Solutions: Accounting Equations on the App
Students of Commerce can study DK Goel Solutions: Accounting Equations alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the DK Goel Solutions: Accounting Equations,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of DK Goel Solutions: Accounting Equations is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup