Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Commerce: Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

The document Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce is a part of the Commerce Course DK Goel Solutions - Class 11 Accountancy.
All you need of Commerce at this link: Commerce

Ques 1: Prepare Accounting Equation from the following:-
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 2(a): Show the Accounting Equation on the basis of the following and present a balance sheet on the last new equation balances:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 2(b): Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:−
1. Started business with Cash ₹ 1,20,000.
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
3. Purchased goods for ₹ 50,000 for cash.
4. Purchased goods for ₹ 40,000 on credit.
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
7. Received ₹ 800 for Commission.
8. Withdrew for private use ₹ 5,000 in cash.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 3: Prepare Accounting Equation from the following:
(a) Started business with Cash ₹ 2,00,000.
(b) Purchased goods for Cash ₹ 60,000 and  on Credit ₹ 1,50,000.
(c) Sold goods for Cash costing ₹ 40,000 at a profit of 20% and on Credit costing ₹ 72,000 at a profit of 25%.
(d) Paid for Rent ₹ 5,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 4: Prepare Accounting Equation from the following:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 5: Mohit has the following transactions, prepare Accounting Equation:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 6: What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 1,80,000.
(ii) Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.
(iii) Sold goods for cash ₹ 40,000; costing ₹ 24,000.
(iv) Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.
(v) Sold goods on credit ₹ 50,000 (costing ₹ 38,000).
(vi) Salary paid in advance ₹ 3,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 7: Use Accounting Equation to show the effect of the following transactions of M/s Royal Traders :Prepare
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 8(a): Prepare Accounting Equation from the following :−
1. Started business with cash ₹ 75,000 and goods ₹ 25,000.
2. Paid for Rent ₹ 2,000.
3. Bought goods for cash ₹ 30,000 and on credit for ₹ 44,000.
4. Goods costing ₹ 50,000 sold at a profit of 25%, out of which ₹ 27,500 received in Cash.
5. Purchased a Motor-cycle for personal use ₹ 20,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 8(b): Prepare Accounting Equation from the following and also prepare a Balance Sheet:-
1. Raghu started business with Cash ₹1,50,000.
2. Bought goods for cash ₹80,000 and on credit for ₹40,000.
3. Goods costing ₹75,000 sold at a profit of 33 1/3%. Half the payment received in cash.
4. Goods costing ₹10,000 sold for ₹12,000 on credit.
5. Paid for Rent ₹2,000 and for salaries ₹4,000.
6. Goods costing ₹20,000 sold for ₹18,500 for Cash.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 9: If the Capital of a business is ₹ 1,20,000 and Outside liabilities are ₹ 20,000, calculate total assets of the business.
Ans:  Assets = Liabilities + Capital
= 20,000 + 1,20,000
= Rs 1,40,000

Ques 10: If total assets of a business are ₹ 1,30,000 and capital is ₹ 80,000, calculate creditors.
Ans: Assets = Liabilities + Capital
1,30,000 = Liabilities + 80,000
Liabilities = 1,30,000 – 80,000
= Rs 50,000
It is assumed that creditors are the only liability of the organisation, thus, Rs 50,000 are the creditors.

Ques 11: 'A' commenced his cloth business on 1st April, 2011 with a capital of ₹ 3,00,000. On 31st March, 2012 his assets were worth ₹ 5,00,000 and liabilities ₹ 1,00,000. Find out his closing capital and profits earned during the year.
Ans:  Opening Capital (Capital as on March 31, 2011) = Rs 3,00,000
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 12(a):  Yogesh commenced business on 1st April, 2011 with a Capital of ₹ 5,00,000 and a loan of ₹ 1,00,000 borrowed from Citi Bank. On 31st March, 2012, his assets were ₹ 8,00,000. Calculate his closing capital and profits earned during the year.
Ans: Opening Capital (Capital as on 1st April, 2011) = Rs 5,00,000
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
*It is assumed that loan borrowed from Citi Bank has not been paid till the end of the accounting year.

Ques 12(b): If in the above case, the proprietor had introduced fresh capital of ₹ 40,000 and had withdrawn ₹ 10,000 for personal purposes, calculate his profits.
Ans: Opening Capital (Capital as on 1st April, 2011) = Rs 5,00,000
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 13: Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.
Ans:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 14: On which side the increase in the following accounts will be recorded? Also mention the nature of account:−
1. Furniture
2. Rent Paid
3. Commission Received
4. Salary Paid
5. Proprietor's Account
6. Debtor
7. Creditor
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 15: On which side the decrease in the following accounts will be recorded? Also mention the nature of account:−
1. Cash
2. Bank Overdraft
3. Rent Paid
4. Outstanding Rent
5. Prepaid Insurance
6. Manoj, Proprietor of the business
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 16: From the following transactions, state the nature of accounts and state the accounts which will be debited and credited:
1. Ganesh started business with Cash ₹ 2,00,000.
2. Purchased goods for Cash ₹ 60,000.
3. Sold goods for cash ₹ 75,000.
4. Purchased goods from Nakul on Credit for ₹ 80,000.
5. Sold goods to Bhushan on Credit for ₹ 50,000.
6. Paid Cash to Nakul ₹ 20,000.
7. Received Cash from Bhushan ₹ 10,000.
8. Paid salary ₹ 20,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 17: Open 'T' shape account for Machinery and write the following on the proper side:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: As we know, Machinery Account is an asset, so, increase in machinery will be recorded on the debit side while decrease in machinery will be recorded on the credit side of the Machinery Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 18: Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:−
1. Purchased goods from Raghubir on credit for ₹ 50,000.
2. Returned goods to Raghubir for ₹ 5,000.
3. Paid to Raghubir ₹ 30,000.
4. Purchased goods from Raghubir on credit for ₹ 16,000.
5. Paid to Raghubir ₹ 20,000.
Ans: Raghubir is a creditor, which means, it is a liability for the business. As we know, increase in liability is recorded on the credit side while decrease in liability will be shown on the debit side of the concerned liability account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 19: Put the following on the proper side of Cash account, Debtor's account and Creditor's account:
(a) Sold goods for cash ₹ 60,000.
(b) Sold goods to Hari on credit ₹ 20,000.
(c) Purchased goods from Krishan on credit ₹ 36,000.
(d) Purchased goods from Krishan for cash ₹ 10,000.
(e) Cash received from Hari ₹ 15,000.
(f) Cash paid to Krishan ₹ 28,000.
Ans: Increase in Cash (being an asset) will be shown on the debit side and decrease in cash will be recorded on the credit side of the Cash Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Increase in Creditors (being a liability) will be shown on the credit side and decrease in the creditors will be recorded on the debit side of the Creditors Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 20: From the following transactions prepare the Proprietor's Account in 'T' shape:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 21: Prepare the Accounting Equation on the basis of the following:
(a) Started business with cash ₹ 1,40,000 and Stock ₹ 2,50,000.
(b) Sold goods (costing ₹ 50,000) at a profit of 25% on the cost.
(c) Deposited into bank account ₹ 1,80,000.
(d) Purchased goods from Mohan ₹ 80,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 22: Prepare Accounting Equation on the basis of the following transactions:
(a) Started business with cash ₹ 70,000.
(b) Credit purchase of goods ₹ 18,000.
(c) Payment made to creditors in full settlement ₹ 17,500.
(d) Purchase of machinery for cash ₹ 20,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 23: Prepare accounting equation from the following:
(a) Started business with cash ₹ 50,000 and goods ₹ 30,000.
(b) Purchased goods for cash ₹ 30,000 and on credit from Karan ₹ 20,000.
(c) Goods costing ₹ 40,000 were sold for ₹ 55,000 for cash.
(d) Withdrew cash for personal use ₹ 10,000.
(e) Rent outstanding ₹ 2,000.
Ans: 

Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 24: Show the accounting equation on the basis of the following transactions and present a Balance Sheet of the last new equation balance:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans:
 Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 25: Prove that the accounting equation is satisfied in the following transactions:−
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 26: Show the accounting equation on the basis of the following transactions and also show the Balance Sheet:
(i) Started business with Cash ₹ 60,000 and Goods ₹ 30,000.
(ii) Purchased goods for Cash ₹ 40,000 and on Credit ₹ 25,000.
(iii) Goods costing ₹ 48,000 sold at a profit of Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce. Three-fourth payment received in Cash
(iv) Goods costing ₹ 20,000 sold at a loss of 5%, out of which ₹ 12,000 received in Cash.
(v) Paid Rent ₹ 4,000 and Salary ₹ 6,000.
(vi) Received Cash from Debtors ₹ 15,000.
(vii) Paid telephone bill amounting to ₹ 800.
Ans: 

Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 27: Show the accounting equation on the basis of following transactions:
(i) Commenced business with Cash ₹ 20,000; Goods ₹ 50,000 and Furniture ₹ 30,000.
(ii) Purchased goods from Gopal on Credit ₹ 40,000.
(iii) Sold goods for Cash ₹ 40,000 (costing ₹ 30,000).
(iv) Sold goods to Ram on Credit ₹ 65,000 (costing ₹ 50,000).
(v) Withdrew for personal use goods costing ₹ 5,000.
(vi) Purchased typewriter for personal use of the proprietor ₹ 20,000.
(vii) Purchased chairs for office use for Cash ₹ 10,000.
(viii) Paid for printing ₹ 500 and received Commission ₹ 1,200.
(ix) Introduced fresh Capital ₹ 40,000.
(x) Paid to Gopal ₹ 30,000.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 28: X started a business on 1st April, 2013 with a Capital of ₹ 1,00,000 and a loan of ₹ 50,000 from the bank. On 31st March, 2014, his assets were ₹ 1,75,000. Find out his Capital as on 31st March, 2014 and profit earned during the year 2013-14.
Ans: Opening Capital (Capital as on 1st April, 2013) = Rs 1,00,000
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 29: Y started a business on 1st April, 2013 with a Capital of ₹ 2,00,000 and a loan of ₹ 75,000 from the bank. During the year, he had introduced additional capital of ₹ 60,000 and had withdrawn ₹ 36,000 for personal purposes. On 31st March, 2014 his assets were ₹ 3,80,000. Find out his Capital as on 31st March, 2014 and profit earned during the year 2013-14.
Ans: Opening Capital (Capital as on 1st April, 2013) = Rs 2,00,000
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 30: On which side will the increase in the following accounts be recorded? Also mention the nature of account:
1.    Furniture
2.    Wages paid
3.    Rent Received
4.    Cash
5.    Proprietor's Account
6.    Debtor
7.    Prepaid Insurance
8.    Outstanding Salary
Ans: 

Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 31: Open 'T' shape account for Furniture and write the following on the proper side∶−
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: As we know, Furniture is an asset, so, increase in furniture will be recorded on the debit side while decrease in furniture will be recorded on the credit side of the Furniture Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 32: Open 'T' shape account of our Creditor 'X' and write the following transactions on the proper side:
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: Increase in Creditors (being a liability) will be shown on the credit side and decrease in the creditors will be recorded on the debit side of the Creditors Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Note: Transaction Number (iv) will not be recorded in Creditors Account as goods are purchased for cash. Thus, there will be no impact on Creditors Account.

Ques 33: Open 'T' shape account of our Debtor 'Ram' and write the following transactions on proper side:−
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: Increase in Debtors (being an asset) will be shown on the debit side and decrease in them will be recorded on the credit side of the Debtors Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 34: Put the following on the proper side of Cash Account, Debtors's Account and Creditor's Account:-
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
Ans: (I) Increase in Cash (being an asset) will be shown on the debit side and decrease in cash will be recorded on the credit side of the Cash Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
(II) Increase in Debtors (being an asset) will be shown on the debit side and decrease in them will be recorded on the credit side of the Debtors Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce
(III) Increase in Creditors (being a liability) will be shown on the credit side and decrease in the creditors will be recorded on the debit side of the Creditors Account.
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 35: Prove that accounting equation is satisfied in all the following cases:
(a) Commenced business with cash ₹ 50,000.
(b) Paid rent ₹ 4,000 including ₹ 1,000 as advance.
(c) Bought goods for cash ₹ 30,000 and on credit ₹ 20,000.
(d) Sold the goods bought on credit for ₹ 25,000.
(e) Purchased furniture worth ₹ 10,000 for office use and for ₹ 5,000 for domestic use.
Ans:  
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

Ques 36: Prepare accounting equation from the following:
(i) Started a business with cash ₹ 1,00,000 and goods worth ₹ 20,000.
(ii) Sold 50% of above goods at a profit of ₹ 2,000 on credit to Ram.
(iii) Rent paid ₹ 5,000.
(iv) Ram paid 50% of his balance in cash.
Ans: 
Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce

The document Accounting Equation Notes | Study DK Goel Solutions - Class 11 Accountancy - Commerce is a part of the Commerce Course DK Goel Solutions - Class 11 Accountancy.
All you need of Commerce at this link: Commerce

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