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

Accounting Equation Q-1 Show the Accounting Equation on the basis of the following transaction. 1. Mr.Z commenced business with cash Rs. 1,00,000 2. Purchased goods for cash Rs. 70,000 3. Purchased goods on credit Rs. 80,000 4. Purchased furniture for cash Rs. 3,000 5. Paid rent Rs. 2,000 6. Sold goods for cash (costing Rs. 45,000 )Rs. 60,000 7. Paid to creditors Rs. 20,000 8. Withdrew cash for private use Rs. 10,000 9. Paid salaries Rs. 5,000 10. Sold goods on credit (cost price Rs. 60,000) Rs. 80,000. (Assets- Rs.178000= liability-60000 + Capital-118000 Q-2. Show the Accounting Equation on the basis of the following transaction. 1. Mr.X starts business and bring in Building-Rs. 90000,Furniture-Rs. 60000 & Cash-Rs. 400000. 2. Purchase goods from mahesh Rs. 400000. 3. Purchase machinery for Rs. 100000. 4. Sold goods to mohan Rs. 100000. 5. Sold goods (costing-55000) for cash to sohan Rs. 80000. 6. Paid salary Rs.70000. 7. Paid Rent Rs.67000. 8. Withdrew cash for personl use Rs.10000. 9. Paid Rs.200000 to Mahesh & balance after a month. 10. Depreciation charge on machinery @10%. 11. Prepaid Expenses Rs.1000. (Assets- Rs.608000 = liability-rs.200000 + Capital-Rs.408000. 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 60,000 2. He purchased furniture 10,000 3. He paid rent 2,000 4. He purchased goods on credit from Mr.X 30,000 5. He sold goods (cost price Rs.20,000) for cash 25,000. (Assets Rs.93000= Liability Rs. 30000+ 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 500000 & Stock 300000. ii. Purchase of machinery for cash Rs. 3,00,000. iii. Sold goods to X Ltd.for Rs.150000 (costing 110000). iv. Purchased goods on credit from mohan Rs.100000. v. Return goods costing Rs.10000 to mohan. vi. Cash payment to mohan Rs.90,000. vii. Receive Rs.100000 cash & Bills receivable for balance from X Ltd. viii. Sold goods to Ram (costing 25000) for Rs.30000. ix. Payment made to creditor Rs.30,000. x. Goods costing 15000 sold @10% discount. xi. Paid Rent Rs.20000. xii. Paid commission Rs.2000 xiii. Receive cash from Ram Rs.15000 & B/R for balance amount. xiv. Sold goods to X Rs.100000 xv. Receive cash from X Rs.99500 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 + 10,000 (iii).10,000 =? + 8,000

Q8. Prepare Accounting equation from the following transactions: Date 1Apr 13 Apr Mahesh started business with cash Rs.100000,stock 200000 & machinery 200000. Purchase Goods from Mr.Ram for Rs. 100000 at 10 % cash discount. 15 Apr Sold goods to Mrs. Z costing Rs. 80000 for Rs. 90000. 17 Apr Sold goods to Mr.X for Rs. 20000. 18 Apr Payment made to Mr.Ram. 19 Apr Received Rs. 89500 in Full setlment of Mrs.Z due. 21 Apr Purchase goods from ABC Ltd. For Rs. 1000000 at 10 % Cash discount. 21 Apr Receive Rs. 11000 from Mrs.X on her account. 25 Apr Paid to ABC Ltd. Rs.899000 in full settlement. 27 Apr Sold goods coting 600000 for cash Rs. 700000 to Mr.U 28 Apr Collect Rs. 8500 from Mr.X in full settlement. 31 Apr Depreciation charge on machinery Rs.20000. Q9. Prepare Accounting equation from the following transactions: January 1 Mr,X started Business with Cash-200000,Stock-250000 & machinery-550000. 2 Purchase goods from Mr.Mohan for Rs.100000 at10% cash discount. Half purchase was made on cash. 3 Paid Salary Rs.10000. 4 Paid commission Rs.15000. 5 Outstanding salary 3000. 8 Outstanding commission Rs.4000. 10 Sales made to Mr.X Rs.100000. 15 Rent received Rs.20000. 15 Received commission Rs.10000. 17 Mr.X paid Rs. 88500 in full settlement of his debt. 21 Purchase furniture for Rs. 2000000. 25 Withdrew cash for personl use Rs.15000. 25 Paid Rent Rs.80000 29 Depreciation charge on machinery @10%. 31 Prepaid Expenses Rs.40000 Q10. Prepare Accounting equation from the following transactions: 1. Mr.Rajul starts business and bring in Goods-Rs. 100000,Furniture-Rs. 200000 & Cash-Rs. 400000. 2. Purchase goods from Dhoni Rs. 200000 3. Sold goods to Mr.zoo Rs. 100000. 4. Sold goods for cash to Raj Rs. 120000. 5. Purchase goods for Rs. 100000. 6. Purchase machinery for Rs. 200000. 7. Paid salary Rs.50000. 8. Paid Rent Rs.88000. 9. Withdrew cash for personl use Rs.150000. 10. Depreciation charge on machinery @10%. 11. Prepaid Expenses Rs.10000. Q-11. Show the Accounting Equation on the basis of the following transaction. 1. Mango started business with cash Rs.120,000 2. He purchased furniture Rs.20,000 3. He paid rent Rs.4,000 4. He purchased goods on credit from Mr.X Rs.60,000 5. He sold goods (cost price Rs.40,000) for cash Rs.50,000 (Assets Rs.186000= Liability Rs. 60000+ capital Rs.126000) Discount Received /Allowed 1.Trade Discount 2. Cash Discount 3. In full settlment

Exa :1 For Trade Discount and Cash Discount & Exa :2 For In Full Settlement. Exa :1. Sold goods to Salman khan of 100000 at term 10% trade discount and 5% cash discount.paid amount at the time of sale itself. Sol:. Invoice price 100000 Less: Trade Discount(10% of 100000) 10000 Sales Price 90000 Less: Cash Discount (5% of 90000) 4500 Cash Received 85500 Q12. Show the Accounting Equation on the basis of the following transaction. 1. Mr.ram started business with cash `100000,Furniture `200000,machinery ` 300000 & Stock ` 400000. 2. Sold goods to Rahul (costing ` 10,000) for ` 15,000. 3. 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 `30,000. 8. Security were purchased for ` 10000. 9. 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 100000 at term 10% trade discount and 5% cash discount.paid amount at the time of sale itself. Sol:. Invoice price 100000 Less: Trade Discount(10% of 100000) 10000 Sales Price 90000 Less: Cash Discount (5% of 90000) 4500 Cash Received 85500 Q13. Show the Accounting Equation on the basis of the following transaction. a) Mr.ram started business with cash `100000,Furniture `200000,machinery ` 300000 & Stock ` 400000. b) Purchase goods from Salman khan of 100000 at term 10% trade discount and 5% cash discount.paid amount at the time of purchase itself. c) Received 550000 from Mr.A in full settlement of his amount for 545000. d) Paid to Mr.K 91500 in full settiement of his account for 91700. e) Purchase goods from Rahul of 80000 at term 15% trade discount and 5% cash discount.paid 60% amount at the time of purchase itself.

f) Purchase goods from Manmohan singh for cash of 50000 at term 10% trade discount and 7% cash discount.(50% cash paid at the time of purchase). g) Paid to Mr.jai 34500 in full settiement of his account for 34600. h) Sold goods to vijay for 40000, allowed him 10% Trade discount and 5% cash discount. Received 25000 at the time of sale. i) Sold goods to Lucky for 200000, allowed him 5% Trade discount and 10% cash discount. Received cash at the time of sale. j) Received 15000 from Mr.A in full settlement of his amount for 21000 k) Sold goods to Ananya ltd. for 200000, 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-200000,Stock-250000 & machinery- 550000. 2 Purchase goods from Mr.Mohan for 100000 at 5% trade discount & 10% cash discount. Half purchase was made on cash. 3 Paid Salary 10000. 4 Paid commission 15000. 5 Outstanding salary 3000. 8 Outstanding commission 4000. 10 Sales made to Mr.X 100000 @10% trade discount. 15 Rent received 20000. 15 Received commission 10000. 17 Mr.X paid 88500 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 ` 300000 & Stock ` 400000. a. Proprietor withdrew for his personal use cash 10000 and goods worth 2000. b. Goods for 15000 were given away as charity.(sales price 20000) c. Goods worth 30000 were distributed as free sample. d. Goods worth 50000 were stolen by employee. e. Goods costing 20000 were destroyed by fire. Insurance company were admitted and paid 60% of claim. f. Goods were Distributed as free sample for 10000. g. Goods worth 35000 & cash 20000 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 50000 were destroyed by fire. Insurance company were admitted claim for only 40000 and paid 60% of amount claim. j. Goods for 50000 were given away as charity. k. Goods worth 100000 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 ` 300000 & Stock ` 400000. a. Proprietor withdrew for his personal use cash 50000 and goods worth 20000. b. Goods for 12000 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 30000 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.

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 20000 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 10000 & furniture 50000 II. Mr X(debtor) Become insolvent and is not able to pay his debt 10000. III. Received 4000 from Mr.X,which was Writtenoff earlier as bad debt in previous year. IV. Salaries due to manager 3000. V. Out of the rent paid this year 1200 is relate with next year. VI. Provide 5% depreciation on machinery costing 100000. VII. Provide 10% Interest on capital. VIII. Charge interest on Drawing 3500. IX. Interest on capital allowed @10% p.a. ( Capital Introduce 650000). X. Interest on capital allowed 5000. Q2. Prepare acconting equation from the following :-George Started business with cash 200000 & furniture 500000 & Stock 100000. 1) George withdrew cash for personal use 2000. 2) Charge interest on Drawing @5% p.a. 3) Commission received in advance for Assessment year. 2000. 4) Mohan a debtor Became Insolvent & paid 60 paisa in a rupee for his total debt of 10000. 5) 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 1500. 8) Charge interest on loan @15% p.a for loan taken in july 900000.(year ended 31dec) 9) Bank charge interest on Overdraft amounting 100000 @ 3% p.a.