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Additional Practical Problems-5

The document contains 6 accounting problems involving transactions that update the accounting equation. The transactions track cash flows, purchases and sales of goods and assets, and changes to equity and liabilities. The accounting equation is set up and balanced for each set of transactions to show that assets = liabilities + equity.

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Ayush Kumar XIth class
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225 views3 pages

Additional Practical Problems-5

The document contains 6 accounting problems involving transactions that update the accounting equation. The transactions track cash flows, purchases and sales of goods and assets, and changes to equity and liabilities. The accounting equation is set up and balanced for each set of transactions to show that assets = liabilities + equity.

Uploaded by

Ayush Kumar XIth class
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

Show the Accounting Equation on the basis of the following transactions and present a
Balance Sheet on the last new equation balance: `
(i) Raj commenced business with Cash 70,000
(ii) Purchased goods on credit 14,000
(iii) Withdrew for private use 1,700
(iv) Goods purchased for cash 10,000
(v) Paid wages 300
(vi) Paid to creditors 10,000
(vii) Sold goods on credit for 15,000
(viii) Sold goods for cash (cost price was ` 3,000) 4,000
(ix) Purchased furniture for 500
[Assets: Cash ` 51,500 + Stock ` 9,000 + Furniture ` 500 + Debtors ` 15,000
= Liabilities: ` 4,000 + Capital: ` 72,000.]

2. Draw an Accounting Equation from the following transactions:


(i) Commenced business with cash ` 50,000, cheque ` 1,00,000, goods ` 30,000 and furniture
` 20,000.
(ii) Car, personal asset of the proprietor, was sold for ` 1,00,000 against cheque which he
deposited in his Savings Account.
(iii) An amount of ` 50,000 was transferred from his Savings Account to the firm’s
Bank Account.
(iv) A new car was purchased for ` 6,00,000 for office use. It was paid by taking loan from
Bank of ` 5,00,000 and balance by issue of cheque from firm’s Bank Account.
(v) Sold goods to Ajay on credit costing ` 4,000 for ` 5,000.
(vi) Sold goods for cash costing ` 12,000 for ` 16,000.
(vii) Purchased goods for cash ` 40,000.
(viii) Purchased goods on credit for ` 20,000.
(ix) Paid rent ` 3,000 including ` 2,000 in advance.
(x) Paid salaries ` 2,000.
(xi) Sold goods costing ` 8,000 for ` 10,000.
(xii) Salaries outstanding ` 1,000.
(xiii) Charge depreciation on furniture ` 500.
[Assets: ` 7,73,500 = Liabilities: ` 5,21,000 + Capital: ` 2,52,500.]
[Hint: In transaction (xiii), furniture will be reduced by ` 500 and capital will also be

reduced by ` 500 because of loss due to depreciation.]
1

3. 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. (KVS)
[Assets: Cash ` 9,250 + Prepaid Rent ` 300 + Stock ` 3,000 =
Liabilities: Salary Outstanding ` 100 + Creditor ` 2,000 + Capital: ` 10,450.]
4. Complete the following Accounting Equation by filling the missing amounts:

Accounting Equation
S. No. Transactions Assets (`) = Liabilities (`) + Capital (`)

(i) B Invested ` 50,000 in cash 50,000 = ...(1)... + ...(2)...


(ii) Purchased securities for ` 7,500 in cash ...(3)... = 0 + ...(4)...
New Equation ...(5)... = 0 + ...(6)...
(iii) Purchased a shop for ` 15,000 giving ` 5,000
in cash and the balance through a loan ...(7)... = ...(8)... + 0
New Equation ...(9)... = ...(10)... + 50,000
(iv) Sold securities costing ` 1,000 for ` 1,500 ...(11)... = 0 + ...(12)...
New Equation ...(13)... = 10,000 + ...(14)...
(v) Purchased an old car for ` 2,800 in cash ...(15)... = 0 + ...(16)...
New Equation 60,500 = ...(17)... + ...(18)...
(vi) Received cash as Commission ` 3,600 ...(19)... = 0 + ...(20)...
New Equation ...(21)... = 10,000 + ...(22)...
(vii) Paid loan’s instalment ` 800 including ` 300 for interest ...(23)... = ...(24)... + ...(25)...
New Equation 63,300 = ...(26)... + ...(27)...

[1: 0; 2: ` 50,000; 3: 0; 4: 0; 5: ` 50,000; 6: ` 50,000; 7: ` 10,000; 8: ` 10,000; 9: ` 60,000;


10: ` 10,000; 11: ` 500; 12: ` 500; 13: ` 60,500; 14: ` 50,500; 15: 0; 16: 0; 17: ` 10,000;
18: ` 50,500; 19: ` 3,600; 20: ` 3,600; 21: ` 64,100; 22: ` 54,100; 23: (` 800); 24: (` 500);
25: (` 300); 26: ` 9,500; 27: ` 53,800.]

5. 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%. (Delhi)
[Assets: Cash ` 92,000 + Stock ` 25,000 + Debtors ` 18,000 =
Liabilities: Creditors ` 30,000 + Capital: ` 1,05,000.]
2

6. 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. (MSE Chandigarh)
[Capital: ` 25,300 + Liabilities: Creditors ` 10,000 = Assets: Cash ` 25,000
+ Debtors ` 1,800 + Stock ` 8,500.]

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