Q-4. Show the Accounting Equation on the basis of the following transaction.

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Doreen Lester
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1 Accounting Equation Q-1 Show the Accounting Equation on the basis of the following transaction. 1. Mr.Z commenced business with cash Rs. 1,00, Purchased goods for cash Rs. 70, Purchased goods on credit Rs. 80, Purchased furniture for cash Rs. 3, Paid rent Rs. 2, Sold goods for cash (costing Rs. 45,000 )Rs. 60, Paid to creditors Rs. 20, Withdrew cash for private use Rs. 10, Paid salaries Rs. 5, Sold goods on credit (cost price Rs. 60,000) Rs. 80,000. (Assets- Rs = liability Capital Q-2. Show the Accounting Equation on the basis of the following transaction. 1. Mr.X starts business and bring in Building-Rs ,Furniture-Rs & Cash-Rs Purchase goods from mahesh Rs Purchase machinery for Rs Sold goods to mohan Rs Sold goods (costing-55000) for cash to sohan Rs Paid salary Rs Paid Rent Rs Withdrew cash for personl use Rs Paid Rs to Mahesh & balance after a month. 10. Depreciation charge on 11. Prepaid Expenses Rs (Assets- Rs = liability-rs Capital-Rs Q-3. Show the Accounting Equation on the basis of the following transaction. i. Ram started business with cash 25,000 ii. Purchased goods from Shabnam 20,000 iii. Sold goods to Amala (costing Rs.18,000) 25,000 iv. Ram withdrew from business 5,000 [Assets Rs. 47,000 = Capital Rs.27,000 + Liabilities Rs.20,000] Q-4. Show the Accounting Equation on the basis of the following transaction. 1. Mango started business with cash 60, He purchased furniture 10, He paid rent 2, He purchased goods on credit from Mr.X 30, He sold goods (cost price Rs.20,000) for cash 25,000. (Assets Rs.93000= Liability Rs capital Rs.63000) Q-5. Indicate how assets, liabilities and capital are affected by each of the following transactions with an accounting equation: i. Salman started Business with cash & Stock ii. Purchase of machinery for cash Rs. 3,00,000. iii. Sold goods to X Ltd.for Rs (costing ). iv. Purchased goods on credit from mohan Rs v. Return goods costing Rs to mohan. vi. Cash payment to mohan Rs.90,000. vii. Receive Rs cash & Bills receivable for balance from X Ltd. viii. Sold goods to Ram (costing 25000) for Rs ix. Payment made to creditor Rs.30,000. x. Goods costing discount. xi. Paid Rent Rs xii. Paid commission Rs.2000 xiii. Receive cash from Ram Rs & B/R for balance amount. xiv. Sold goods to X Rs xv. Receive cash from X Rs in full settlement. Q-6.Give transactions with imaginary figures involving the following: i. Increase in assets and capital, ii. Increase and decrease in assets, iii. Increase in an asset and a liability, iv. Decrease of an asset and owner s capital. Q-7. find the following : (i) 20,000 = 15,000 +? (ii)? = 5, ,000 (iii).10,000 =? + 8,000

2 Q8. Prepare Accounting equation from the following transactions: Date 1Apr 13 Apr Mahesh started business with cash Rs ,stock & machinery Purchase Goods from Mr.Ram for Rs at 10 % cash discount. 15 Apr Sold goods to Mrs. Z costing Rs for Rs Apr Sold goods to Mr.X for Rs Apr Payment made to Mr.Ram. 19 Apr Received Rs in Full setlment of Mrs.Z due. 21 Apr Purchase goods from ABC Ltd. For Rs at 10 % Cash discount. 21 Apr Receive Rs from Mrs.X on her account. 25 Apr Paid to ABC Ltd. Rs in full settlement. 27 Apr Sold goods coting for cash Rs to Mr.U 28 Apr Collect Rs from Mr.X in full settlement. 31 Apr Depreciation charge on machinery Rs Q9. Prepare Accounting equation from the following transactions: January 1 Mr,X started Business with Cash ,Stock & machinery Purchase goods from Mr.Mohan for Rs at10% cash discount. Half purchase was made on cash. 3 Paid Salary Rs Paid commission Rs Outstanding salary Outstanding commission Rs Sales made to Mr.X Rs Rent received Rs Received commission Rs Mr.X paid Rs in full settlement of his debt. 21 Purchase furniture for Rs Withdrew cash for personl use Rs Paid Rent Rs Depreciation charge on 31 Prepaid Expenses Rs Q10. Prepare Accounting equation from the following transactions: 1. Mr.Rajul starts business and bring in Goods-Rs ,Furniture-Rs & Cash-Rs Purchase goods from Dhoni Rs Sold goods to Mr.zoo Rs Sold goods for cash to Raj Rs Purchase goods for Rs Purchase machinery for Rs Paid salary Rs Paid Rent Rs Withdrew cash for personl use Rs Depreciation charge on 11. Prepaid Expenses Rs Q-11. Show the Accounting Equation on the basis of the following transaction. 1. Mango started business with cash Rs.120, He purchased furniture Rs.20, He paid rent Rs.4, He purchased goods on credit from Mr.X Rs.60, He sold goods (cost price Rs.40,000) for cash Rs.50,000 (Assets Rs = Liability Rs capital Rs ) Discount Received /Allowed 1.Trade Discount 2. Cash Discount 3. In full settlment

3 Exa :1 For Trade Discount and Cash Discount & Exa :2 For In Full Settlement. Exa :1. Sold goods to Salman khan of at term 10% trade discount and 5% cash discount.paid amount at the time of sale itself. Sol:. Invoice price Less: Trade Discount(10% of ) Sales Price Less: Cash Discount (5% of 90000) 4500 Cash Received Q12. Show the Accounting Equation on the basis of the following transaction. 1. Mr.ram started business with cash `100000,Furniture `200000,machinery ` & Stock ` Sold goods to Rahul (costing ` 10,000) for ` 15, Sold goods to Rahul (costing ` 10,000) at a profit of 20% on cost. 4. Sold goods to Shahida for ` 20,000 at a profit of 10% on sale. 5. Sold goods to Shaan (costing ` 10,000) at a profit of 20% on sale. 6. Goods purchased from raju for ` 12,000 at Trade discount of 10% and cash discount of 5%. He paid 50% immediately and avail cash discount. 7. Goods destroyed (sales price `40,000) during flood costing `30, Security were purchased for ` Half of the stock available was sold to rakesh at a profit of 10% on cost. CASH DISCOUNT Note: 2. Cash Discount is allowed only when cash is received/paid 1. Exa : Sold goods to Salman khan of at term 10% trade discount and 5% cash discount.paid amount at the time of sale itself. Sol:. Invoice price Less: Trade Discount(10% of ) Sales Price Less: Cash Discount (5% of 90000) 4500 Cash Received Q13. Show the Accounting Equation on the basis of the following transaction. a) Mr.ram started business with cash `100000,Furniture `200000,machinery ` & Stock ` b) Purchase goods from Salman khan of at term 10% trade discount and 5% cash discount.paid amount at the time of purchase itself. c) Received from Mr.A in full settlement of his amount for d) Paid to Mr.K in full settiement of his account for e) Purchase goods from Rahul of at term 15% trade discount and 5% cash discount.paid 60% amount at the time of purchase itself.

4 f) Purchase goods from Manmohan singh for cash of at term 10% trade discount and 7% cash discount.(50% cash paid at the time of purchase). g) Paid to Mr.jai in full settiement of his account for h) Sold goods to vijay for 40000, allowed him 10% Trade discount and 5% cash discount. Received at the time of sale. i) Sold goods to Lucky for , allowed him 5% Trade discount and 10% cash discount. Received cash at the time of sale. j) Received from Mr.A in full settlement of his amount for k) Sold goods to Ananya ltd. for , allowed her 20% Trade discount and 10% cash discount. Received cash at the time of sale. Q14. Show the Accounting Equation on the basis of the following transaction. January 1 Mr,X started Business with Cash ,Stock & machinery Purchase goods from Mr.Mohan for at 5% trade discount & 10% cash discount. Half purchase was made on cash. 3 Paid Salary Paid commission Outstanding salary Outstanding commission Sales made to Mr.X trade discount. 15 Rent received Received commission Mr.X paid in full settlement of his debt. Q15. Some special cases Prepare Accounting equation in each case if Mr.ram started business with cash `100000,Furniture `200000,machinery ` & Stock ` a. Proprietor withdrew for his personal use cash and goods worth b. Goods for were given away as charity.(sales price 20000) c. Goods worth were distributed as free sample. d. Goods worth were stolen by employee. e. Goods costing were destroyed by fire. Insurance company were admitted and paid 60% of claim. f. Goods were Distributed as free sample for g. Goods worth & cash were stolen by employee. h. Goods costing 1000 were destroyed by fire. Insurance company were admitted and paid 30% of amount admitted. i. Goods costing were destroyed by fire. Insurance company were admitted claim for only and paid 60% of amount claim. j. Goods for were given away as charity. k. Goods worth were distributed as free sample. l. Stock(costing 2000) used for repair of machinery. Q15. Some special cases Prepare Accounting equation in each case if Mr.ram started business with cash `100000,Furniture `200000,machinery ` & Stock ` a. Proprietor withdrew for his personal use cash and goods worth b. Goods for were given away as charity.(sales price 20000) c. Goods worth 20,000 were distributed as free sample. d. Goods worth 5000 were stolen by employee. e. Goods costing were destroyed by fire. Insurance company were admitted and paid 40% of claim. f. Goods were Distributed as free sample for 15,000. g. Goods worth 50,000 & cash 10,000 were stolen by employee.

5 h. Goods costing 10,000 were destroyed by fire. Insurance company were admitted and paid 60% of amount admitted. i. Goods costing 30,000 were destroyed by fire. Insurance company were admitted claim for only and paid 60% of amount claim. j. Goods for 40,000 were given away as charity. k. Goods worth 10,000 were distributed as free sample. l. Stock(costing 20,000) used for repair of machinery. Q.16. Prepare acconting equation from the following :- I. Mr. Y Started business with cash & furniture II. Mr X(debtor) Become insolvent and is not able to pay his debt III. Received 4000 from Mr.X,which was Writtenoff earlier as bad debt in previous year. IV. Salaries due to manager V. Out of the rent paid this year 1200 is relate with next year. VI. Provide 5% depreciation on machinery costing VII. Provide 10% Interest on capital. VIII. Charge interest on Drawing IX. Interest on capital p.a. ( Capital Introduce ). X. Interest on capital allowed Q2. Prepare acconting equation from the following :-George Started business with cash & furniture & Stock ) George withdrew cash for personal use ) Charge interest on p.a. 3) Commission received in advance for Assessment year ) Mohan a debtor Became Insolvent & paid 60 paisa in a rupee for his total debt of ) Out of the salaries paid this year 700 is relate with next year. 6) Paid rent for 14 months 1400.(2 months in advance) 7) Paid commission to manager in advance ) Charge interest on p.a for loan taken in july (year ended 31dec) 9) Bank charge interest on Overdraft amounting 3% p.a.

Chapter 3 JOURNAL LEDGER AND TRIAL BALANCE

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