Accounting Equation | Accountancy Class 11 - Commerce PDF Download

Q1: What will be effect of the following on the Accounting Equation? 
(i) Started business with cash ₹ 45,000 
(ii) Opened a Bank Account with a deposit of ₹ 4,500 
(iii) Bought goods from M\s. Sun & Co. for ₹ 11,200

Ans: This question is as follows:
Therefore, Liabilities = 11,200 
Capital = 45,000 
Assets = Liabilities + Capital 
= 45,000 + 11,200 = 56,200

Q2: Show the Accounting Equation for the following transactions:

Ans: This question is as follows:
Here, Liabilities = 10,000 
Capital = 19,700 
Assets = 10,000 + 19,700 = 29,700

Q3: Show the effect of the following transactions on the Accounting Equation: 
(i) Started business with cash ₹ 50,000. 
(ii) Salaries paid ₹ 2,000. 
(iii) Wages Outstanding ₹ 200. 
(iv) Interest due but not paid ₹ 100. 
(v) Rent paid in advance ₹ 150.

Ans: This question is as follows:

Q4: What will be the effect of the following on the Accounting Equation? 
(i) Harish started business with cash ₹ 18,000 
(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000 
(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400) 
(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200

Ans: This question is as follows:

Q5: Prepare Accounting Equation from the following: 
(i) Started business with cash ₹ 1,00,000 and Goods ₹ 20,000. 
(ii) Sold goods worth ₹ 10,000 for cash ₹ 12,000. 
(iii) Purchased furniture on credit for ₹ 30,000.

Ans: This question is as follows:

Q6: 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 purchases goods on credit ₹ 3,000.
(v) He sold goods (cost price ₹ 2,000) for ₹ 5,000 on cash.

Ans: This question is as follows:
The balance sheet is prepared as follows

Q7: 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%.

Ans: This question is as follows:

Q8: 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.

Ans: This question is as follows:

Q9: 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.

Ans: This question is as follows:

Here, Liabilities = 20,000 + 100 = 20,100 
Capital = 64,400 
Assets = 64,400 + 20,100 = 84,500

Balance sheet is prepared as follows

Q10: 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.

Ans: This question is as follows:

Balance sheet is prepared as follows

Q11: 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.

Ans: This question is as follows:
Here, Liabilities = 2000 + 100 = 2100 
Capital = 10,450 
Assets = 10,450 + 2100 = 12,550

Q12: Show the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last new equation balance:

Ans: This question is as follows:
Balance sheet is prepared as follows

Q13: 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.

Ans: This question is as follows:

Balance sheet is prepared as follows

Q14: 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.

Ans: This question is as follows:

Q15: 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.

Ans: This question is as follows:

Q16: Prepare Accounting Equation from the following:
(a) Started business with cash ₹ 1,00,000. 
(b) Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000. 
(c) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%. 
(d) Paid salaries ₹ 8,000.

Ans: This question is as follows:

Q17: Show the accounting equation on the basis of following transactions: 
(a) Ram started business with ₹ 25,000. 
(b) Purchased goods from Shyam ₹ 10,000. 
(c) Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.

Ans: This question is as follows:

Q18: If the capital of a business is ₹ 3,00,000 and liabilities are ₹ 50,000, loss ₹ 70,000, calculate the total assets of the business.

Ans: We know that total assets of a business can be calculated by
Total Assets = Capital - Loss + Liabilities
= 3,00,000 - 70,000 + 50,000
= ₹ 2,80,000

Q19: If total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000, calculate the creditors.

Ans: The value of creditors can be calculated as follows
Creditors = Total Assets - Net worth
= 1,30,000 - 80,000
= 50,000

Q20: A commenced his cloth business on 1st April, 2018 with a capital of ₹ 30,000. On 31st March 2019, his assets were worth ₹ 50,000 and liabilities of ₹ 10,000. Find out his closing capital and profits earned during the year.

Ans: Here Capital = 30,000
Assets = 50,000
Liabilities = 10,000

Q21: If capital of a business is ₹ 1,40,000 and liabilities are of ₹ 80,000, calculate the total assets of the business.

Ans: Here Capital = 1,40,000
Liabilities = 80,000

Q22: Calculate the total assets if: 
(i) Capital is ₹ 40,000. 
(ii) Creditors are ₹ 25,000. 
(iii) Revenue during the period is ₹ 50,000. 
(iv) Expenses during the period are ₹ 40,000.

Ans: Here Capital = 40,000 
Creditors = 25,000 
Revenue = 50,000
Expenses = 40,000

Q23: (a) A had a capital of ₹ 75,000 on 1st April, 2018. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business. 
(b) After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.

Ans: 

Q24: (a) Mohan started a business on 1st April, 2018 with a capital of ₹ 10,000 and borrowed ₹ 3,000 from a friend. He earned a profit of ₹ 5,000 during the year ended 31st March, 2019 and withdrew cash ₹ 4,000 for personal use. What is his capital on 31st March, 2019? 
(b) Mahesh started a business with a capital of ₹ 15,000 on 1st April, 2018. During the year, he made a profit of ₹ 3,000. He owes ₹ 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2019?

Ans: 

Q25: Mohan started a business on 1st April, 2018 with a capital of ₹ 25,000 and a loan of ₹ 12,500 borrowed from Shyam. During 2018-19 he had introduced additional capital of ₹ 12,500 and had withdrawn ₹ 7,500 for personal use. On 31st March, 2019 his assets were ₹ 75,000. Find out his capital as on 31st March, 2019 and profit made or loss incurred during the year 2018-19.

Ans:
 

Q26: 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.

Ans: 

Q27: Show an Accounting Equation on the basis of the following transactions:

Ans: This question is as follows: