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Class 11-commerce T S GREWAL Solutions Accountancy Chapter 5 - Accounting Equation

Accounting Equation Exercise 5.18

Solution 1

 

Sr. No.

Transactions

Assets

=

Liabilities+

Capital

Cash

Rs.

+

Bank +

Rs. 

Stock

Rs. 

=

Creditors

Rs. 

Capital

Rs. 

(i)

Started business with cash

45,000

 

 

 

=

 

45,000

 

 

45,000

 

 

 

=

 

45,000

(ii)

Opened a Bank Account with a deposit

(4,500)

 

4,500

 

=

 

 

 

 

40,500

 

4,500

 

=

 

45,000

(iii)

Bought goods from M/s .Sun and Co.

 

 

 

11,200

=

11,200

 

 

Total

40,500

+

4,500 +

11,200

=

11,200 +

45,000

 

Solution 2

Sr. No.

Transactions

Assets

=

Liabilities

+

Capital

 

 

Cash

Rs.

+

Stock

Rs. 

+

Debtors

Rs. 

=

Creditors

Rs. 

 

Capital

Rs. 

(i)

Gopinath started business with

25,000

 

 

 

 

=

 

 

25,000

 

 

25,000

 

 

 

 

=

 

 

25,000

(ii)

Purchased goods from Shyam

 

 

10,000

 

 

 

10,000

 

 

 

 

25,000

 

10,000

 

 

=

10,000

 

25,000

(iii)

Sold goods to Sohan

 

 

(1,800)

 

1,500

=

 

 

(300)

 

 

25,000

 

8,200

 

1,500

=

10,000

 

24,700

(iv)

Gopinath withdraw from business

(5000)

 

 

 

 

=

 

 

(5,000)

 

Total

20,000

+

8,200

+

1,500

=

10,000

+

19,700

 

Solution 3

Sr. No.

Transactions

Assets 

=

Liabilities

+

Capital

Cash

Rs.

+

Advance Expenses

Rs.

=

Outstanding Expenses

Rs.

 

Capital

Rs. 

(i)

Started business with cash

50,000

 

 

=

 

 

50,000

 

 

50,000

 

 

=

 

 

50,000

(ii)

Salaries paid

(2,000)

 

 

=

 

 

(2,000) (Exp.)

 

 

48,000

 

 

=

 

 

48,000

(iii)

Wages Outstanding

 

 

 

=

200

 

(200)

 

 

48,000

 

 

=

200

 

47,800

(iv)

Interest due but not paid

 

 

 

=

100

 

(100)

(Exp.)

 

 

48,000

 

 

=

300

 

47,700

(v)

Rent pain advance

(150)

 

150

=

 

 

 

 

Total

47,850

+

150

=

300

+

47,700

 

 

Solution 4

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

Stock

Rs.

=

Creditors

Rs.

+

Outstanding Rent

Rs.

+

Capital

Rs. 

(i)

Harish started business with cash

18,000

 

 

=

 

 

 

 

18,000

 

 

18,000

 

 

=

 

 

 

 

18,000

(ii)

Purchased goods for cash Rs.5,000 and on credit Rs.2,000

(5,000)

 

7,000

=

2,000

 

 

 

 

 

 

13,000

 

7,000

=

2,000

 

 

+

18,000

(iii)

Sold goods for cash Rs.4,000 costing Rs.2,400

4,000

 

(2,400)

=

 

 

 

 

1,600

(Profit)

 

 

17,000

 

4,600

=

2,000

 

 

+

19,600

(iv)

Rent paid Rs.1,000 and Rent Outstanding Rs.200

(1,000)

 

 

=

 

 

200

 

(1,200)

 

Total

16,000

+

4,600

=

2,000

 

200

+

18,400

 

Accounting Equation Exercise 5.19

Solution 5

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

 Stock +

Rs.

Furniture

Rs.

=

 

Creditors

Rs.

+

Capital

Rs. 

(i)

Started business with cash Rs.1,00,000 and Goods Rs.20,000

1,00,000

 

20,000

 

=

 

 

1,20,000

 

 

1,00,000

 

20,000

 

=

 

 

1,20,000

(ii)

Sold goods worth Rs.10,000 for cash Rs.12,000

12,000

 

(10,000)

 

=

 

 

2,000

(Profit)

 

 

1,12,000

 

10,000

 

=

 

 

1,22,000

(iii)

Purchased furniture on credit for Rs.30,000

 

 

 

30,000

=

30,000

 

 

 

Total

1,12,000

+

10,000 +

30,000

=

30,000

+

1,22,000

 

Solution 6

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

 Furniture 

Rs.

+

 

Stock

Rs.

=

 

Creditors

Rs.

+

Capital

Rs. 

(i)

Ajeet started business with cash Rs.20,000

20,000

 

 

 

 

=

 

 

20,000

 

 

20,000

 

 

 

 

=

 

 

20,000

(ii)

He purchased furniture for Rs.2,000

(2,000)

 

2,000

 

 

=

 

 

 

 

 

18,000

 

2,000

 

 

=

 

 

20,000

(iii)

He paid rent of Rs.200

(200)

 

 

 

 

=

 

 

(200)

(Exp.)

 

 

17,800

 

2,000

 

 

=

 

 

19,800

(iv)

He purchased goods on credit Rs.3,000

 

 

 

 

3,000

=

3,000

 

 

 

 

17,800

 

2,000

+

3,000

=

3,000

 

19,800

(v)

He sold goods(cost price Rs. (2,000) for Rs.5,000 on cash

5,000

 

 

+

(2,000)

=

 

 

3,000

(Profit)

 

Total

22,800

+

2,000

+

1,000

=

3,000

+

22,800

 

Balance Sheet 

Liabilities

Rs.

Assets

Rs. 

Capital

22,800

Cash

22,800

Creditors

3,000

Furniture

2,000

 

 

Stock

1,000

 

25,800

 

25,800

 

Solution 7

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

 Stock 

Rs.

+

 

Debtors

Rs.

=

 

Creditors

Rs.

+

Capital

Rs. 

(i)

Started business with cash Rs.1,00,000

1,00,000

 

 

 

 

=

 

 

1,00,000

 

 

1,00,000

 

 

 

 

=

 

 

1,00,000

(ii)

Purchased goods for cash Rs.20,000 and on credit Rs.30,000

(20,000)

 

50,000

 

 

=

30,000

 

 

 

 

80,000

 

50,000

 

 

=

30,000

 

1,00,000

(iii)

Sold goods for cash costing Rs.10,000 and on credit costing Rs.15,000 both at a profit of 20%

12,000

 

(10,000)

 

(15,000)

 

 

+

 

 

18,000

=

 

=

 

 

2,000

 

3,000

 

Total

92,000

+

25,000

+

18,000

=

30,000

+

1,05,000

 

Solution 8

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

 Stock 

Rs.

+

 

Furniture

Rs.

=

 

Creditors

Rs.

+

Capital

Rs. 

(i)

Mohan commenced business with cash

50,000

 

 

 

 

=

 

 

50,000

 

 

50,000

 

 

 

 

=

 

 

50,000

(ii)

Purchased goods for cash

(30,000)

 

30,000

 

 

=

 

 

 

 

 

20,000

 

30,000

 

 

=

 

 

50,000

(iii)

Purchased goods on credit

 

 

20,000

 

 

=

20,000

 

 

 

 

20,000

 

50,000

 

 

=

20,000

 

50,000

(iv)

Sold goods costing Rs.10,000 for Rs.12,000

12,000

 

(10,000)

 

 

=

 

 

2,000

(Profit)

 

 

32,000

 

40,000

 

 

=

20,000

 

52,000

(v)

Bought furniture on credit

 

 

 

 

2,000

=

2,000

 

 

 

 

32,000

 

40,000

+

2,000

=

22,000

 

52,000

(vi)

Paid cash to creditor

(15,000)

 

 

 

 

=

(15,000)

 

 

 

 

17,000

 

40,000

+

2,000

=

7,000

 

52,000

(vi)

Salary paid

(1,000)

 

 

 

 

=

 

 

(1,000)

 

Total

16,000

+

40,000

+

2,000

=

7,000

+

51,000

 

Solution 9

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

 Stock 

Rs.

+

 

Machinery

Rs.

=

 

Creditors

Rs.

 

Capital

Rs. 

(i)

Started business with cash Rs.70,000

70,000

 

 

 

 

 

 

 

70,000

 

 

70,000

 

 

 

 

 

 

 

70,000

(ii)

Credit purchase of goods Rs.18,000

 

 

18,000

 

 

=

18,000

 

 

 

 

70,000

 

18,000

 

 

=

18,000

 

70,000

(iii)

Payment made to creditor Rs.17,500 in full settlement

(17,500)

 

 

 

 

=

(18,000)

 

500

(Discount Received)

 

 

52,500

 

18,000

 

 

=

NIL

 

70,500

(iv)

Purchase of machinery for cash Rs.20,000

(20,000)

 

 

 

20,000

 

 

 

 

 

 

32,500

 

18,000

 

20,000

=

NIL

 

70,500

(v)

Depreciation on machinery Rs.2,000

 

 

 

 

(2,000)

 

 

 

 

(2,000)

(Depreciation)

 

Total

32,500

+

18,000

+

18,000

=

NIL

+

68,500

 

Solution 10

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

Prepaid Rent

Rs.

+

 

Stock

Rs.

=

 

Creditors

Rs.

+

Outstanding Salary

Rs. 

+

Capital

Rs. 

(i)

Commenced business with cash Rs.60,000

60,000

 

 

 

 

 

 

 

 

 

60,000

 

 

60,000

 

 

 

 

=

 

 

 

 

60,000

(ii)

Paid rent in advance Rs.500

(500)

 

500

 

 

 

 

 

 

 

 

 

 

59,500

 

500

 

 

=

 

 

 

 

60,000

(iii)

Purchased goods for cash Rs.30,000 and credit Rs.20,000

(30,000)

 

 

 

50,000

 

20,000

 

 

 

 

 

 

29,500

 

500

 

50,000

=

20,000

 

 

 

60,000

(iv)

Sold goods for cash 30,000 costing Rs.20,000

30,000

 

 

 

(20,000)

 

 

 

 

 

10,000

(Profit)

 

 

59,500

 

500

 

30,000

=

20,000

 

 

 

70,000

(v)

Paid salary Rs.500 and salary outstanding being Rs.100

(5000)

 

 

 

 

=

 

 

 

 

(5,000)

(Drawings)

 

Total

54,000

+

500

+

30,000

=

20,000 +

 

100

+

64,400

 

Balance Sheet

Liabilities

Rs.

Assets

Rs. 

Capital

64,400

Cash

54,000

Creditors

20,000

Prepaid Rent

500

Outstanding Salary

100

Stock

30,000

 

85,500

 

85,500

 

Accounting Equation Exercise 5.20

Solution 11

Sr. No.

Transactions

Assets

=

Liabilities + Capital

Cash

Rs.

+

Accrued Interest

Rs.

=

 

Advance Commission 

Rs. 

+

Capital

Rs. 

(i)

Started business with cash Rs.60,000

60,000

 

 

=

 

 

60,000

 

 

60,000

 

 

=

 

 

60,000

(ii)

Rent received Rs.2,000

2,000

 

 

=

 

 

2,000

(Income)

 

 

62,000

 

 

=

 

 

62,000

(iii)

Accrued interest Rs.500

 

 

500

=

 

 

500

(Income)

 

 

62,000

 

500

=

 

 

62,500

(iv)

Commission received in advance Rs.1,000

1,000

 

 

=

1,000

 

 

 

 

63,000

 

500

=

1,000

 

62,500

(v)

Amount withdrawn Rs.5,000

( 5000)

 

 

=

 

 

(5,000)

 

Total

58,000

+

500

=

1,000

+

57,500

 

Balance Sheet

Liabilities

Rs. 

Assets

Rs. 

Capital

57,500

Cash

58,000

Advance Commission

1,000

Accrued Interest

500

 

58,500

 

58,500

 

Solution 12

Sr. No.

Transactions

Assets 

=

Liabilities + Capital

Cash

Rs.

+

Prepaid Rent

Rs.

 

+

Stock

Rs.

=

 

Creditors

Rs. 

+

Outstanding Salary

Rs.

+

 

Capital

Rs. 

(i)

Started business with cash Rs.10,000

10,000

 

 

 

 

 

 

 

 

 

10,000

 

 

10,000

 

 

 

 

=

 

 

 

 

10,000

(ii)

Paid rent in advance Rs.300

(300)

 

300