Accountancy Class XI

Accounting Equation Worksheet

Q1. Show the Accounting Equation on the basis of the following transactions
(i) Started business for cash RS 70000
(ii) Credit purchases of goods Rs 18000
(iii) Payment made to creditors in full settlement Rs 17500
(iv) Purchase of machinery for cash Rs 20000

Q2. Show the Accounting Equation on the basis of the following transactions
(i) Started business with a capital of Rs 150000
(ii) Furniture purchased for cash Rs 20000
(iii) Purchased goods from Mahesh on credit Rs 25000
(iv) Sold goods costing Rs 10000 to Mohan for cash Rs 14000
(v) Additional capital introduced Rs 20000
(vi) Commission received in advance Rs 2000
(vii) Paid to creditor Mahesh Rs 22500 in full settlement
(viii) Sold goods costing Rs 15000 for Rs 18000 out of which Rs 5000 received in cash
(ix) Depreciation on furniture provided @ 10%

Q3. How are the following items dealt in Accounting Equation?

(i) Interest due but not received Rs 500
(ii) Rent received in advance Rs 1000
(iii) Insurance premium paid in advance Rs 1500
(iv) Salary due but not yet paid Rs 2000

Q4. Show the Accounting Equation on the basis of the following transactions and also prepare the balance sheet
(i) Manu started business with cash Rs 100000
Opened a bank account and transferred Rs 400000 from his saving account
(ii) Purchased a building from Sohan for Rs 1200000 paid by taking a loan from SBI Rs 1000000
*(balance in cash)
(iii) Paid interest on loan Rs 20000 and installment of Rs 100000
(iv) Purchased goods from Rohan on credit Rs 100000
(v) Goods returned to Rohan costing Rs 20000
(vi) Sold goods costing Rs 40000 for Rs 50000 on credit for Ram
(vii) Took goods from business for personal use Rs 10000
(viii) Accrued interest Rs 5000
(ix) Commission received in advance Rs 20000
(x) Cash received from Ram Rs 10000

Q5. Show the accounting equation on the basis of the following transactions:
a) Shri Ganesh commenced business with cash Rs.35,000, goods Rs.8,000 and furniture Rs.7,000.
b) Bought furniture from M/s Mohan Furnitures on credit for Rs.3,000.
c) Purchased goods from Sohan for cash Rs.35,000.
d) Sold goods to Shyam for cash Rs.40,000(costing Rs.30,000).
e) Bought goods from Ramesh Rs.30,000.
f) Sold goods to Shyam costing Rs.30,000 for Rs.50,000.
g) Received Rs.49,500 from Shyam in full settlement.
h) Paid Rs.29,700 to Ramesh in full settlement.
i) Paid half the amount owed to M/s Mohan.
j) Withdrew Rs.1,000 for personal use.
k) Withdrew goods for personal use(cost Rs.500, sale price Rs.600).
l) Purchased household goods for Rs.15,000 giving Rs.5,000 in cash and the balance through a loan.
m) Paid cash Rs.500 for loan and Rs.300 for interest.
n) Goods destroyed by fire (cost Rs.500, sale price Rs.600)
o) Paid salary Rs.500 and salary outstanding Rs.100.
p) Paid rent in advance Rs.2,000.
q) Accrued interest Rs 500.
r) Commission received in advance Rs 1,000.
s) Charged depreciation of Rs 400 on furniture.

Q6. Calculate total liability and owner’s capital at the end:

(i) Owner capital in the beginning Rs 60000

(ii) Creditors at the end Rs 50000
(iii) Revenue during the period Rs 70000
(iv) Expenses during the period Rs 65000

Answer:- Liability Rs 115000

Capital Rs 65000

Q7. X started business on 1st April 2016 with a capital of Rs 50000 , and a loan of Rs 25000 taken from Y. During
2016-17 , he introduced additional capital of Rs 25000 and withdrew Rs 15000 for his personal use. On 31st March
2017 , the assets were Rs 150000. Find his capital at the end and the profit or loss for the year.

Answer:- Capital Rs 125000

Profit- Rs 65000