1.”Accounting
equation remains intact under all circumstances.” Justify the statement with
the help of an example.
2. Prepare
accounting Equation:
Rs.
a. Bill started business 12,00,000
b. Bought goods for cash 2,00,000
c. Bought goods on credit 3,00,000
d. Bought a machine 2,20,000
e. Sold goods (costing Rs. 40,000) 46,000
f.
Sold
goods (cost Rs. 12,000) and received a cheque 18,000
g. Charged depreciation on machine 4,000
h. Goods destroyed by fire 50,000
i.
Purchased
goods for Rs.20,000 and paid Rs.12,000 by cheque and balance in cash
j.
Paid
Telephone bill 3,000
k. Constructed night shelters for the
homeless 21,000
3. Mr. Rameshwar Das started business on
1st Jan 2015 with a capital of Rs. 150000. During the year, the
following transaction took place:
1. Furniture purchased for cash 2,00,000
2. Purchased goods from Manish for
credit 2,50,000
3. Sold goods(costing Rs.1,00,000) to
Mohan for cash 1,40,000
4. Additional capital introduced 2,00,000
5. Commission received in advance 20,000
6. Paid to creditors(Manish) Rs.2,25,000 in full
settlement
7. Sold goods (costing Rs.1,50,000) for
Rs. 1,80,000 out of which Rs. 50,000 received in cash.
8. Depreciation on furniture provided @
10%.
4. Show accounting equation on the basis
of following transactions:
a. Started business with cash Rs.10,000.
b. Paid rent in advance Rs.300.
c. Purchased goods for cash Rs. 5000 and
credit Rs.2000.
d. Sold goods for cash Rs. 8000 (costing
Rs.4000).
e. Paid salary in cash Rs. 450 and
salary outstanding Rs. 100.
f.
Bought
motorcycle for personal use Rs. 3000.
5. Amit started business with cash
investment of Rs.35000. The following business transactions have been recorded:
a. Paid 3 months advance rent for office
accommodation Rs. 2100.
b. Bought car for office use Rs.21000.
c. Purchased office furniture Rs.7000.
d. Bought office typewriter from
S.S.Comapny Rs. 3000.
e. Sold extra office furniture at cost
to Amar Rs.1000.
f.
Amar
paid the amount of the bill at maturity
and Amit paid half of the amount he owed to S.S. Company.
g. Collected Rs.6000 as commission.
h. Paid telephone bill amounting to
Rs.150.
6. Pramod had the following
transactions. Use accounting equation to show their effect on his assets, liabilities and
capital:
a. Invested Rs.1,00,000 in cash.
b. Purchased equity shares in A Co. Ltd.
For cash Rs,15000.
c. Purchased a land for Rs. 15,000,
giving Rs.5,000 in cash and balance through loan.
d. Sold equity shares costing Rs.2000
for Rs.2500.
e. Purchased an old car for Rs.10,000
cash.
f.
Received
cash as commission Rs.4,000.
g. Paid cash for loan Rs.1000 and Rs.100
for interest.
h. Paid cash for domestic expense
Rs.500.
i.
Received
cash for dividend on shares Rs.200.
7. On May1,2015 Mahendra opened a dry
cleaning business. He completed the following transactions during the month of
May:
a. Invested Rs.25000 in the business and
deposited deposited the amount in the bank account.
b. Purchased an account cleaning
supplies Rs. 1900.
c. Purchased for cash office equipment
Rs.10,000.
d. Paid telephone bill Rs.250.
e. Billed customers for completed work
Rs.2500.
f.
Paid
Rs.900 on account for cleaning supplies purchased in transaction (b).
g. Paid wages Rs2000.
h. Received Rs.1500 cash from customers
previously billed in transaction (g).
8. Form the Accounting Equation:
a. Brij Mohan started business with cash
Rs.1,00,000.
b. Brought goods for cash Rs.60,000.
c. 1/3rd of the above goods
sold at a profit of 20% on cost.
d. Half of the payment received in cash.
e. Purchased typewriter for office use
Rs. 15000.
f.
Purchased
goods on credit from X Rs.15000.
g. Paid salary Rs. 3000.
h. Paid to X Rs.15000.
9. The assets of A on 31st
December,1996 were Rs.1,00,000. His liabilities were:
Creditors Rs.10,000 Bank overdraft Rs.8000, Bills Payable Rs.9000,
outstanding salaries Rs.4000.
Calculate his capital on that date.
10. Calculate Total equity and Owner’s
Equity:
a. Owner’s Equity at the beginning
Rs120000.
b. Revenue during the period is Rs.
140000.
c. Equity of creditors is Rs.1,00,000.
d. Expenses during the period are
Rs.1,30,000.
11. On 31st March 2015, the
total assets and the external liabilities were Rs.1,00,000 and Rs.3000
respectively. During the year, the proprietor had introduced additional capital
of Rs.10,000 and had withdrawn Rs.6000 for personal use. He made a profit of
Rs.10,000 during the year. Calculate capital as on 1st April,2014.
12.
Prove that the accounting equation is satisfied
in all the following transactions of Suresh:
(a) Commenced business with cash
Rs 36000.
(b) Paid rent in advance Rs 300.
(c) Purchased goods for cash Rs
18000 and credit Rs. 12000.
(d) Sold goods for cash Rs. 18000
costing Rs. 12000.
(e) Paid salary Rs 300
13. (a)Ramesh commenced business
on 1st Jan. 2015 with a Capital of Rs. 5,00,000 and a loan of Rs. 1,00,000
borrowed from Citi Bank. On 31st Dec 2015, his assets were Rs. 8,00,000.
Calculate his closing capital and profits earned during the year.
(b) If in the above case, the
proprietor had introduced fresh capital of Rs. 40,000 and had withdrawn Rs. 10,000 for
personal purposes, calculate his profits.
14. Show the accounting equation on the
basis of following transactions and present a balance sheet on the last new
equation balances:
Varun and Raj entered into a partnership agreement to deal in furniture.
They contributed Rs.2,10,000 and Rs.1,50,000 as capital respectively. Other
transactions were as under:
Rs.
a. Timber purchased by them 1,20,000
b. Wages paid to carpenters 90,000
c. Furniture sold(costing Rs.1,20,000) 1,50,000
d. Furniture sold on credit (costing
Rs.27,000) 30,000
e. Amount received from debtors 29,700
Discount allowed 300
f.
Timber
purchased on credit 18,000
g. Furniture purchased 15,000
h. Payment to creditors Rs. 17,850 in
full settlement
i.
Amount
withdrawn
Varun 6,000
Raj 3,000
No comments:
Post a Comment