Page 24 - debkxi

Accounting Equation 5.7

Unsolved Questions

1. Complete the following Accounting Equation by filling the missing amounts:
Accounting Equation

No. Transactions Assets (`) = Liabilities (`) + Capital (`)
(i) Misha Commenced business with cash ` 50,000
and goods ` 30,000 ...(1)... = 0 + ...(2)...
(ii) Sold 40% goods at a profit of 25% to Mohan ...(3)... = 0 + ...(4)...
New Equation ...(5)... = 0 + ...(6)...
(iii) Paid salary ` 4,000 and ` 1,000 is outstanding ...(7)... = ...(8)... + (5,000)
New Equation ...(9)... = 1,000 + ...(10)...
(iv) Paid ` 2,000 as insurance premium including
` 500 prepaid ...(11)... = 0 + ...(12)...
New Equation ...(13)... = 1,000 + ...(14)...
(v) Prepaid Rent ` 1,000 ...(15)... = 0 + ...(16)...
New Equation ...(17)... = ...(18)... + 76,500
(vi) Goods costing ` 2,000 distributed as samples
and ` 3,000 taken by Misha for personal use ...(19)... = 0 + ...(20)...
New Equation ...(21)... = 1,000 + ...(22)...
[Ans.: 1: ` 80,000; 2: ` 80,000; 3: ` 3,000; 4: ` 3,000; 5: ` 83,000; 6: ` 83,000; 7: (` 4,000); 8: ` 1,000;
9: ` 79,000; 10: ` 78,000; 11: (` 1,500); 12: (` 1,500); 13: ` 77,500; 14: ` 76,500; 15: 0; 16: 0;
17: ` 77,500; 18: ` 1,000; 19: (` 5,000); 20: (` 5,000); 21: ` 72,500; 22: ` 71,500.]

2. Complete the following Accounting Equation by filling the missing amounts:
Accounting Equation
No. Transactions Assets (`) = Liabilities (`) + Capital (`)
(i) Nisha Commenced business with cash ` 40,000
and goods ` 20,000 ...(1)... = 0 + ...(2)...
(ii) Sold half goods at 25% profit to Ram ...(3)... = 0 + ...(4)...
New Equation ...(5)... = 0 + ...(6)...
(iii) Sold half goods at 10% loss for cash ...(7)... = 0 + ...(8)...
New Equation ...(9)... = 0 + ...(10)...
(iv) Bought goods from Rakesh ` 25,000 and
paid ` 9,000 in cash ...(11)... = ...(12)... + 0
New Equation ...(13)... = 16,000 + ...(14)...
(v) Bought furniture ` 7,000 for office use and
` 3,000 for domestic use ...(15)... = 0 + ...(16)...
New Equation ...(17)... = 16,000 + ...(18)...
[Ans.: 1: ` 60,000; 2: ` 60,000; 3: ` 2,500; 4: ` 2,500; 5: ` 62,500; 6: ` 62,500; 7: (` 1,000); 8: (` 1,000);
9: ` 61,500; 10: ` 61,500; 11: ` 16,000; 12: ` 16,000; 13: ` 77,500; 14: ` 61,500; 15: (` 3,000);
16: (` 3,000); 17: ` 74,500; 18: ` 58,500.]