TS Grewal Solutions for Class 11 Accountancy Chapter 2 Accounting Equations

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TS Grewal Class 11 Accountancy Solutions

Class 11 Accountancy Chapter 2 – Accounting Equation

Question 1:

What will be the impact of the following on the accounting equation?

(i) Mr. Harsh started a company with cash ₹50,000.

(ii) He opened an account in a bank with a deposit of ₹5,000

(iii) He also purchased few products from Vibha & Co. for ₹13,000

Solution:

Transaction
Assets = Liabilities + Capital
Cash
Rs.
Bank
Rs.
Stock
Rs.
Creditors
Rs
Capital
Rs.
(i) Started company with cash 50,000 50,000
(ii)
Opened an account in a bank
50,000
-50,000 50,00
(iii)
Purchased few products from Vibha & Co.
45,000 5,000 50,000
13,000 13,000
Total 45,000 5,000 13,000 13,000 50,000

 

Question 2:

Draft the accounting equation for the following transaction.Show the Accounting Equation for the following transactions: 

(i)
(ii)
(iii)
(iv)
Ganesh started a new venture with cash
Bought goods from Raj
Sold goods to Rahul for costing Rs. 2,000
Ganesh withdrew from the company
30,000
15,000
1,500
8,000

 

Solution:

Transaction
Assets = Liabilities + Capital
Cash
Rs.
Stock
Rs.
Debtor
Rs.
Creditors
Rs
Capital
Rs.
(i) Ganesh started a new venture with cash 30,000 30,000
(ii)
Bought goods from Raj
30,000 30,000
15,000 15,000
(iii)
Sold goods to Rahul
30,000 15,000 15,000 30,000
1,800 1,500 300
(iv)
Ganesh withdrew from the company
30,000 13,200 1,500 15,000 29,700
8,000 8,000
Total 22,000 13,200 1,500 15,000 21,700

 

Question 3:          

Show the outcome of the following transaction on the accounting equation.

(i) Began a company with cash ₹50,000

(ii) Salaries paid ₹ 5,000

(iii) Wages outstanding ₹1000

(iv) Interest due but not paid ₹500

(v) Rent paid in advance ₹ 300   

Solution:

Sr.
No.
Transactions
Assets = Liabilities + Capital
Cash
Rs.
Advance Exp.
Rs
Outstanding Expenses
Rs.
Capital
Rs.
(i) Began a company with cash 50,000 50,000
(ii)
Salaries paid
50,000 50,000
5,000 5,000 (exp)
(iii)
Wages outstanding
45,000 45,000
1,000 1,000
(iv)
Interest due but not paid
45,000 1,000 44,000
500 500 (exp)
(v)
Rent paid in advance
45,000 1,500 43,500
-300 300
Total 44,700 300 1,500 43,500

 

Question 4:

What will be the accounting equation of the following.

(i) Sangya started a company with cash ₹ 25,000

(ii) Bought goods for cash ₹ 7,000 and on credit ₹ 3,000

(iii)Sold goods for cash ₹ 5,000 (costing ₹ 2,500)

(iv) Rent paid ₹ 2,000 and Rent outstanding ₹ 500

Solution:

Sr.
No.
Transactions
Assets = Liabilities + Capital
Cash
Rs.
Stock
Rs.
Creditors
Rs.
Outstanding
Rs
Capital
Rs.
(i) Sangya started a company with cash 25,000 25,000
(ii)
Bought goods for cash ₹ 7,000 and on credit ₹ 3,000
25,000 25,000
7,000 10,000 3,000
(iii)
Sold goods for cash ₹ 5,000 (costing ₹ 2,500)
18,000 10,000 3,000 25,000
5,000 2,500 2,500
(iv)
Rent paid ₹ 2,000 and Rent outstanding ₹ 500
23,000 7,500 3,000 27,500
2,000 500 2,500
Total 21,000 7,500 3,000 500 25,000

 

Question 5:

Compose accounting equation for the following.

(i) Began business with cash ₹2,00,000 and goods ₹50,000

(ii) Sold goods worth ₹ 15,000 for cash ₹20,000

(iii) Bought furniture on credit for ₹40,000

Solution:

Sr.
No.
Transactions
Assets = Liabilities + Capital
Cash
Rs.
Stock
Rs.
Furniture
Rs.
Creditors
Rs
Capital
Rs.
(i) Began business with cash and goods 2,00,000 50,000 2,50,000
(ii)
Sold goods
2,00,000 50,000 2,50,00
15,00 20,000 5,000
(profit)
(iii)
Furniture purchased on Credit
2,15,000 30,000 2,55,000
40,000 40,000
Total 2,15,000 30,000 40,000 40,000 2,55,000

 

Question 6:

Prepare accounting equation and balance sheet of the following.

(i) Nayan started business ₹30,000

(ii) He purchased furniture for 5,000

(iii) He paid rent of ₹500

(iv) He bought goods on credit ₹ 3,000

(iv) He sold goods (cost price ₹ 2000) for ₹5,000 on cash

Solution:

Sr.
No.
Transactions
Assets = Liabilities + Capital
Cash
Rs.
Stock
Rs.
Furniture
Rs.
Creditors
Rs
Capital
Rs.
(i) Nayan started business 30,000 30,000
(ii)
He purchased furniture
30,000 30,000
-5,000 5,000
(iii)
He paid rent
25,000 5,000 30,000
500 500(exp)
(iv)
He bought goods on credit
24,500 5,000 29,500
3,000 3,000 29,500
(v)
He sold goods
24,500 5,000 3,000 3,000 29,500
5,000 2,000 3,000(exp)
Total 29,500 5,000 1,000 3,000 32,500

Balance Sheet:

Liabilities Rs. Assets Rs.
Capital 32,500 Cash 29,500
Creditors 3,000 Furniture 5,000
Stock 1,000
Total 35,500 35,000

 

Question 7:

Prepare accounting equation of the following.

(i) Started business ₹80,000

(ii) He purchased furniture for cash ₹10,000 and on credit ₹ 20,000

(iii) He sold goods cash coating ₹10,000 on credit costing ₹20,000 both at a profit of 20%

Solution:

Sr.
No.
Transactions
Assets = Liabilities + Capital
Cash
Rs.
Stock
Rs.
Furniture
Rs.
Creditors
Rs
Capital
Rs.
(i) Started business for ₹80,000 80,000 80,000
(ii)
He purchased furniture for cash ₹10,000 and on credit ₹ 20,000
80,000 80,000
10,000 30,000 20,000 80,000
(iii)
He sold goods cash coating ₹5,000 on credit costing ₹15,000 both at a profit of 20%
70,000 30,000 20,000 80,000
-10,000 1,000
11,000 -15,000 18,00 3,000
Total 81,000 5,000 18,000 84,000

 

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