4 Marks Question

Question 14 Marks

Show the Accounting Equation for the following transactions:

S.no		₹
(i)	Gopinath started business with cash	25,000
(ii)	Purchased goods from Shyam	10,000
(iii)	Sold goods to Sohan costing ₹ 1,800	1,500
(iv)	Gopinath withdrew from business	5,000

Answer

Assets = 20,000 + 8,200 + 1,500 = ₹ 29,700
Liabilities = ₹ 10,000
Capital = ₹ 19,700

Question 24 Marks

Mohan started a business on $1^{\text {st }}$ April, $2018$ with a capital of $₹ 10,000$ and borrowed $₹\ 3,000$ from a friend. He earned a profit of $₹\ 5,000$ during the year ended $31^{\text {st }}$ March, 2019 and withdrew cash $₹\ 4,000$ for personal use. What is his capital on $31^{\text {st }}$ March, $2019?$
Mahesh started a business with a capital of $₹\ 15,000$ on $1^{\text {st }}$ April, $2018.$ During the year, he made a profit of $₹$ 3,000. He owes $₹\ 2,500$ to suppliers of goods. What is the total of assets in his business on $31^{\text {st }}$ March, $2019?$

Answer

Capital on March $31, 2019 =$ Capital on April $01, 2018$ $+$ Profit $-$ Drawings

$= 10,000 + 5,000 - 4,000 = ₹\ 11,000$

Total Assets on March $31, 2019$ $=$ Capital on April $01, 2018 +$ Profit $+$ Creditors

$= 15,000 + 3,000 + 2,500 = ₹\ 20,500$

Question 34 Marks

What will be the effect of the following on the Accounting Equation?

Answer

Assets = 16,000 + 4,600 = ₹ 20,600
Liabilities = 2,000 + 200 = ₹ 2,200
Capital = ₹ 18,400

Question 44 Marks

Prepare Accounting Equation from the following:

Started business with cash ₹ 1,00,000.
Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%.
Paid salaries ₹ 8,000.

Answer

Assets = 84,000 + 25,000 + 18,000 = ₹ 1,27,000
Liabilities = ₹ 30,000
Capital = ₹ 97,000

Account 4 Marks Question