Class 11 Accountancy Chapter 2 - Accounting Equation

TS Grewal Solutions for Class 11 Accountancy Chapter 2:

TS Grewal Solutions for Class 11 Accountancy Chapter 2- Accounting Equation is a fundamental concept to be studied by the students. Here, we have provided in a simplistic and a step by step method, which is useful for the students to score well in the board exams.

Class 11 TS Grewal Solutions Accountancy Chapter 2:-Download PDF Here

Board CBSE
Class Class 11
Subject Accountancy
Chapter Chapter 2
Chapter Name Accounting Equation
Number of questions solved  

7

Category TS Grewal

Chapter 1- Accounting Equation defines the below-mentioned concepts:

  • Balance Sheet and Income Statement
  • Balance in Accounting:
  • Fundamental Accounting Equation
  • Accounting equation in an Income Statement
  • Double-entry bookkeeping system

Ts Grewal Solutions for Class 11 Accountancy Chapter 2- Accounting Equation

Question 1

What will be the impact of the following on the accounting equation?

(i) Mr. Harsh started a company with cash ₹50,000.

(ii) He opened an account in a bank with a deposit of ₹5,000

(iii) He also purchased few products from Vibha & Co. for ₹13,000

Solution:

Sr.No  

Transaction

Assets = Liabilities + Capital
Cash

Rs.

Bank

Rs.

Stock

Rs.

Creditors

Rs

Capital

Rs.

(i) Started company with cash 50,000 50,000
(ii) Opened an account in a bank 50,000
(50,000) 50,00
(iii) Purchased few products from Vibha & Co. 45,000 5,000 50,000
13,000 13,000
Total 45,000 5,000 13,000 13,000 50,000

Question 2

Draft the accounting equation for the following transaction.

(i)

(ii)

(iii)

(iv)

Ganesh started a new venture with cash

Bought goods from Raj

Sold goods to Rahul for costing Rs. 2,000

Ganesh withdrew from the company

30,000

15,000

1,500

8,000

Solution:

Sr.No  

Transaction

Assets = Liabilities + Capital
Cash

Rs.

Stock

Rs.

Debtor

Rs.

Creditors

Rs

Capital

Rs.

(i) Ganesh started a new venture with cash 30,000 30,000
(ii) Bought goods from Raj 30,000 30,000
15,000 15,000
(iii) Sold goods to Rahul 30,000 15,000 15,000 30,000
1,800 1,500 300
(iv) Ganesh withdrew from the company 30,000 13,200 1,500 15,000 29,700
8,000 8,000
Total 22,000 13,200 1,500 15,000 21,700

Question 3

Show the outcome of the following transaction on the accounting equation.

(i) Began a company with cash ₹50,000

(ii) Salaries paid ₹ 5,000

(iii) Wages outstanding ₹1000

(iv) Interest due but not paid ₹500

(v) Rent paid in advance ₹ 300

Solution:

Sr.

No.

 

Transactions

Assets = Liabilities + Capital
Cash

Rs.

Advance Exp.

Rs

Outstanding Expenses

Rs.

Capital

Rs.

(i) Began a company with cash 50,000 50,000
(ii) Salaries paid 50,000 50,000
5,000 5,000(exp)
(iii) Wages outstanding 45,000 45,000
1,000 1,000
(iv) Interest due but not paid 45,000 1,000 44,000
500 500(exp)
(v) Rent paid in advance 45,000 1,500 43,500
(300) 300
Total 44,700 300 1,500 43,500

Question 4

What will be the accounting equation of the following.

(i) Sangya started a company with cash ₹ 25,000

(ii) Bought goods for cash ₹ 7,000 and on credit ₹ 3,000

(iii)Sold goods for cash ₹ 5,000 (costing ₹ 2,500)

(iv) Rent paid ₹ 2,000 and Rent outstanding ₹ 500

Solution:

Sr.

No.

 

 

Transactions

Assets = Liabilities + Capital
Cash

Rs.

Stock

Rs.

Creditors

Rs.

Outstanding

Rs

Capital

Rs.

(i) Sangya started a company with cash 25,000 25,000
(ii) Bought goods for cash ₹ 7,000 and on credit ₹ 3,000 25,000 25,000
7,000 10,000 3,000
(iii) Sold goods for cash ₹ 5,000 (costing ₹ 2,500) 18,000 10,000 3,000 25,000
5,000 2,500 2,500
(iv) Rent paid ₹ 2,000 and Rent outstanding ₹ 500 23,000 7,500 3,000 27,500
2,000 500 2,500
Total 21,000 7,500 3,000 500 25,000

Question 5

Compose accounting equation for the following.

(i) Began business with cash ₹2,00,000 and goods ₹50,000

(ii) Sold goods worth ₹ 15,000 for cash ₹20,000

(iii) Bought furniture on credit for ₹40,000

Solution:

Sr.

No.

 

Transactions

Assets = Liabilities + Capital
Cash

Rs.

Stock

Rs.

Furniture

Rs.

Creditors

Rs

Capital

Rs.

(i) Began business with cash and goods 2,00,000 50,000 2,50,000
(ii) Sold goods 2,00,000 50,000 2,50,00
15,00 20,000 5,000

(profit)

(iii) Furniture purchased on Credit 2,15,000 30,000 2,55,000
40,000 40,000
Total 2,15,000 30,000 40,000 40,000 2,55,000

Question 6

Prepare accounting equation and balance sheet of the following.

(i) Nayan started business ₹30,000

(ii) He purchased furniture for 5,000

(iii) He paid rent of ₹500

(iv) He bought goods on credit ₹ 3,000

(iv) He sold goods (cost price ₹ 2000) for ₹5,000 on cash

Solution:

Sr.

No.

 

Transactions

Assets = Liabilities + Capital
Cash

Rs.

Stock

Rs.

Furniture

Rs.

Creditors

Rs

Capital

Rs.

(i) Nayan started business 30,000 30,000
(ii) He purchased furniture 30,000 30,000
(5,000) 5,000
(iii) He paid rent 25,000 5,000 30,000
500 500(exp)
(iv) He bought goods on credit 24,500 5,000 29,500
3,000 3,000 29,500
(v)  

He sold goods

24,500 5,000 3,000 3,000 29,500
5,000 2,000 3,000(exp)
Total 29,500 5,000 1,000 3,000 32,500

Balance Sheet

Liabilities Rs. Assets Rs.
Capital 32,500 Cash 29,500
Creditors 3,000 Furniture 5,000
Stock 1,000
Total 35,500 35,000

Question 7

Prepare accounting equation of the following.

(i) Started business ₹80,000

(ii) He purchased furniture for cash ₹10,000 and on credit ₹ 20,000

(iii) He sold goods cash coating ₹10,000 on credit costing ₹20,000 both at a profit of 20%

Solution:

Sr.

No.

 

Transactions

Assets = Liabilities + Capital
Cash

Rs.

Stock

Rs.

Furniture

Rs.

Creditors

Rs

Capital

Rs.

(i) Started business for ₹80,000 80,000 80,000
(ii) He purchased furniture for cash ₹10,000 and on credit ₹ 20,000 80,000 80,000
10,000 30,000 20,000 80,000
(iii) He sold goods cash coating ₹5,000 on credit costing ₹15,000 both at a profit of 20% 70,000 30,000 20,000 80,000
(10,000) 1,000
11,000 (15,000) 18,00 3,000
Total 81,000 5,000 18,000 84,000

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