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CBSE Class 11-commerce Answered

Explain the process involved in developing an accounting equation.
Asked by Topperlearning User | 13 Jun, 2016, 04:55: PM
answered-by-expert Expert Answer

Process involved in developing an accounting equation:

  1. Ascertain the variables of an equation such as assets, liabilities or capital affected by a business transaction
  2. Identify the effects of a transaction by either increasing or decreasing the variables of an equation
  3. Show the effect on the appropriate side of an equation and ensure that the total on the right hand side is equal to the total on the left hand side
Answered by | 13 Jun, 2016, 06:55: PM
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CBSE 11-commerce - Accountancy Part I
State the two basic purposes of accounting equation?
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Give an example for each of the following : Increase in asset, decrease in another asset Increase in asset, increase in liability Increase in liability, decrease in owner’s capital
Asked by Topperlearning User | 13 Jun, 2016, 04:59: PM
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What do you understand by the term ‘owner’s equity’?
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Arihant has a stock of goods worth Rs.15,000. He sells half the goods at a profit of 20%. What will be the effect on the accounting equation?
Asked by Topperlearning User | 13 Jun, 2016, 05:01: PM
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CBSE 11-commerce - Accountancy Part I
Purchase of an ongoing business; costing assets for Rs.8,50,000 and liablities Rs.5,50,000 for a purchase consideration of  Rs.1,50,000.
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Rebate of Rs.400 allowed by the holder of bills payable of Rs.1,400 on early payment. Give the effect of the following transaction on accounting equation.
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Z had a capital of Rs.85,000 on 1st April, 2015. He also had goods amounting to Rs.20,000 which he had purchased on credit and whose payment has not been made. Find out the value of total assets of the business. After a period of one month, he came to know that he had suffered a loss of Rs.1,800. He withdrew Rs.700 for his personal use. Find out the capital and assets of the business.
Asked by Topperlearning User | 14 Jun, 2016, 10:08: AM
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Give an example of each of the following : Increase in asset and decrease in another asset Decrease in liability and increase in another liability Decrease in asset and decrease in owner’s equity Increase in asset and increase in owner’s equity
Asked by Topperlearning User | 13 Jun, 2016, 04:55: PM
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CBSE 11-commerce - Accountancy Part I
Explain the process involved in developing an accounting equation.
Asked by Topperlearning User | 13 Jun, 2016, 04:55: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
What will be effect of the following on the accounting equation? Ramesh started business with cash Rs.50,000 Purchased goods for cash Rs.5,000 and on credit Rs.2,000 Sold goods for cash Rs.8,000 (costing Rs.3,500) Rent paid Rs.5,000 and rent outstanding Rs.1,200
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