12,000

= 22,800.]20,000
2,000200 3,0005,0001,000
30,000 30,000
= 1,22,000.]
4,500
45,000 25,000 = 19,700.] 20,000
1,5005,0001,500
10,000.
X
{3,77,000.) 11,20090045,0001
(KVS)
11
CBSE Liabilitie
1,20,000 7,300 o
75,750
2,42,000 2.89
Keeping- Debtors Capital:
Stock 10,000
+
Furniture
l6,000, Capital:
Stock Capital: 30,000
Capital:
+
20,000,
Total
Assets basis: +
Book 1,87,5007,00,000
5,00,000 2,000
+ + +
R 500+ 10,000+
8,200
? ?
(ii)(u) 11,200 following
3,000
Entry
(iv)I
7,000,
58,000;
42,500: 4,
Furniture
Double ClosingCapital
) Equation?
2,82,0003,01,250
1,45,000 Bank Stock Creditors
PROBLEMS Creditors?
PRACTICAL transactions: Creditors
the Furnitur
? ?
R 4, Stock
37,500, + +
40,500 20,000on +
Accounting 22,800 Goods
Proft
orLoss Sheet Liabilities: +
33,750 Liabilities: 1,12,000
cases: 20,000 18,000
20,000
-17,500 ? Liabilities: following: for
(ii) following for
Cash Balance and
3,80,000;
of Cash cash Creditors
following
deposit Cash 1,00,000
for
the
Drawing15,000 Assets: cash 1,800 Assets: cash in the cash Cash
67,000 Co. the business Assets: for
12,500 on and 2,000)
? a with Liabilitie
fron for creditAssets:
thne [Ans.:
(i)
2,50,000, following
with& for Shyam with credit
Sun JAns.: [Ans.:
costing Equation
for cash
in cash Equation
business [Ans.: 10,000
from business price Equation
values (O
Capital
Additional Account
M/s. furniture
on on
1,25,00028,000 37,500 from with Ans.:
thewith Sohan
withdrew goods
(cost
furniture
? from Accounting
of business Accounting
started
goods worth
business
nìssing started Accounting
effect Bank
goods to
of purchased
purchased
goods
Opening
Capital
() 1,37,500 rent
5,00,000
2,50,0002,50,000 goods
Purchased goods
Purchased
a GopinathGopinath
the ?
be Started
Opened
Bought
Gurman
paid sold
(v)
He Started
an
Calculate will the Sold Sold
He He He
Prepare Prepare
What Show
Case ) (i) (ii)(iii) (i) (iü)(iii)(iv) ) (ii) (iii)(iv) (i) (ii)(iii)
(iin) (iv) (v)
5.20 1. 2. 3. 4.
3.
AcCountingEquation S.21

E Develop an Accounting Equation from the following transactions:

50,000
(i) Mohan commenced business with cash
30,000
(ii) Purchased goods for cash
20,000
(içi) Purchased goods on credit
12,000
(iv) Sold goods (costing? 10,000) for
(v) Bought furniture on credit 2,000
15,000
(vi) Paid cash to a creditor
(vii) Salary paid 1,000
[Ans.: Assets. Cash 16,000 + Stock 40,000 + Furniture? 2,000=
Liabilities: Creditors 5,000 + Vendor for Furniture 2,000 + Capital: 51, 000.]
6. Prepare an Accounting Equation on the basis of the following transactions:
70,000
(i) Started business with cash
(ii) Credit purchase of goods 18,000
17,500
(iiü) Payment made to creditors in full settlement
(iu) Purchase of machinery for cash 20,000
2,000
(u) Depreciation on machinery
(Delhi)
[Ans.: Assets: Cash 32,500 -+ Stock 18,000 + Machinery 18,000 =
Liabilities: Nil + Capital: 68, 500.]
7. Show the effect of the following transactions on the Accounting Equation:
50,000
(i) Started business with cash
(ii) Salaries paid 2,000
200
(iii) Wages outstanding
100
(iv) Interest due but not paid
150
(u) Rent paid in advance
[Ans.: Assets: Cash 47,850 + Prepaid Rent 150 =
Liabilities: Outstanding Expenses 300 + Capital: 47, 700.]
8. 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 5,000and on credit 2,000
(iüi) Sold goods for cash 4,000 (costing 2,400)
1,000 and rent outstanding 200 (Delhi)
(iu) Rent paid
[Ans.: Assets: Cash 16,000 + Stock 4,600 =
Liabilities: Outstanding Rent 200 + Creditors 2,000 + Capital: ? 18,400.]
9. Show the effect of the following transactions of M/s Royal Traders:
(a) Started business with cash 1,20,000
(b) Purchased goods for cash 10,000
(c) Rent received 5,000
(d) Salary outstanding 2,000
(e) Sold goods for cash (costing 5,000) 7,000
) Goods destroyed by fire 500
(KVS)
[Ans.: Assets: Cash 1,22,000+ Stock 4,500 = Liabilities: Outstanding Expenses
2,000 + Capital: 1,24,500.]
Dote
Page
 Double Entry Book
S.22 Keeping-
10. Prove that the Accounting Equation is satisfied in all the following transactiong of
Also prepare a Balance Sheet.
() Commenced business with cash
Suresh
(i) Paid rent in advance
(iii) Purchased goods for cash 30,000 and credit
(iv) Sold goods for cash ? 30,000 costing 20 04
(u) Paid salary 500 and salary outstanding being
(vi) Bought mnotorcycle for personal use
20,909
[Ans.: Assets: Cash 54,000 + Prepaid Rent 500 + Stock 5,04
Liabilities: Creditors 20,000 + Outstanding Salary ? 100 + Capital; 30,000
1. Show the effect of thefollowing transactions and also prepare a Balance Sheet:
(i) Started business with cash
64,400)
(ii) Rent received
(iii) Accrued interest
60,2,000006
(iv) Commission received in advance 500
(U) Amount withdrawn 1,5,000000
[Ans.: Assets: Cash 58,000+ Accrued interest 500 = Liabilities:
[Hint: Capital
Received in Advance1,000 + Capital:
=Opening Capital 60,000 + Rent Received ? 2,000 + Accrued Into
Commi57,s5si00on
500 - Drawings 5,000 = 57,500.]
12. Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash
(ii) Paid into bank 50,000
(iii) Purchased goods for cash 20,000 and credit 10,000
(iv) Sold goods for cash costing 30,000 for 30,40,000
000
(U) Rent paid 500
(vi) Rent outstanding 100
(vii) Bought furniture on credit 5,000
(viii) Bought refrigerator for personal use 5,000
(ix) Purchased motorcycle for cash 20,00
Create an Accounting Equation to show the effect of the above and also show his Balance She
[Ans.: Assets: Cash 34,500 + Bank 10,000 + Stock 20,000
+ Furniture 5,000+ Motoreycle 20, 000 = Liabilities: Creditors T30,00
+ Outstanding Rent 100 +Vendor for Furniture T 5,000 + Capital: 54,403
13. 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) WVithdrew cash for personal use 10,000.
(v) Rent outstanding 2,000. (MSE Chandigarh)
[Ans.: Assets: Cash 65,000 + Stock 40,000 = Liabilities: Outstanding Rent 2,000
Creditors 20, 000 + Capital: 83,000,
4. 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,O00 and on credit costing 15,000 both at a profit of z0
(d) Paid salaries 8,000. (Delhi)
[Ans.: Capital: 97,000 + Liabilities: Creditors 30.000 = Assets: Cash ,
tStock 25,000 + Debtors 18,0001
 5.23 goodsis 3,42,000.}
60,000 1,50,000
Machinery 25,00050,000 5009,000
1,00,000
50,000 1,500
1,000 10050,000 500100.]
20025.000 Equities
[Ans.:[Ans.:
50,000.]
2,80,000.]
calculate 10,000.] 40,000.
On closing
creditors. 75,000.]
(Delhi)
payment 30,000.
cheque; 78,
? 1, External his
Stock 70,000,
the Profit are =
+ Capital: Find Assets
the Capital: period
by 30,000+ calculateof
of 10,000.
40,000;
1,00,000 1,00,000 transactions: and capital 25,000.
half loss the Total
+ + Loss
Nil
(g00ds) 51,500 50,000, 80,000, during[Ans.:
and ?
Liabilities: and a of Capital are
and Bank liabilities
with
cOst
transactions:
Z50,000. Stock following Profit Expenses
Creditors
50,000 Liabilities:
for are
on + 50,000. amount
i
worth 2023 [Ans.:
10% 50.000 6,000 liabilities
+ =
Capital, and
ash? 1.00.000
furniture 11.000 the April,
of 10%. net 50,000 (ii)(iv)
following 10,000. Furniture cashthe for =
with profit Cash of credit costing
tenants
2,29,600
andClosing
and and 50,000.
@ basis depositingfurniture
deposited lst year.
and provided
business 5%.par. Debtors
10,000
at Bank = 3,00,000
Liabilities.]
1,30,000
a
use 3,60,000 cash on goods onworth
the at @ the the
1,00,000 + Ram fromn
cash business is
sold charged
personal + 1,00,000 and and (personal) Assets:
for machinery + on with tenants Opening wereduring period
commenced 61,000
50,000 by Account credit business.
Equation goods EquationAccount from for
deposit cash
capital are
car building fire is if:
R CapitalNil.] business
2.
Liabilities: stationery [Ans.: business Assets assets
machinery fordrawings Cash
personalgoodson
from in by business
cloth
earned
assets the
40,000.
shares
above Cash Machinery
JAns.:
Assets: Bank Shyam security interest
fresh Assets,
destroyed the
Accountingreceived
in
cash.onwithdrawn790,000
+
Furniture Bank
Accounting a cartage
= his during
Mahapatra for Opening startedfirm'spurchased
purchased rent his
Worth total
profits
Depreciation a of ofa 2024.
the on his in Introduced
Purchased is Revenue
goods a to ofTotal
of assets commenced
Equation 60,000;
ccounting ReceivedReceived
Received Invested theCapital
paid
of Interest + Opened
sold sold
Goods capital assets
Net March
and
1/3rd Cash [Hints:
1. Sunil the Calculate
Sold total
an D. an He in HeHe HeHe Calculation capital
[Hint:
show Show the total (i) (LLi)
() (ii) (iii)
G)(v)(v)) ( )(iü)(iii) (iu)(v)(ui)(vii) (ix)(x)(xi)(xii)
(viii) (xiv)
(xiii) the
31st
If If A
17. 18. 19. 20.
6