elasSmAte

Date
Page

Hccaunting-Eauatiaon
Duel Aspet
Deb it Cedit
Assets= liobilities +Capital
(External CInteonal liabilties)
outstamoung

Aplicad ion = Souhce alunds

1
S.no tramsactien Asets =diablitiestCapitol
Cash tAanktstahl
14tedbusness with
Cash F45,o0. 45,ouD t 45 ouo

2 en Bank accoud with!

dsposit aFY, 5mscmtSn
n e teauatien500 45co O + 45ao

3 Bught goocls o
g 2m ,2anE 1l,2.aD
Einal eajuation oSnt4.Scmtl 20m=200 t 45ao
Total 56,2.00 562.cn
 cASSMAe
Dole
Page

Q2

. S.mo Tranbaction ABets diabilites +Cabial

Cash tstock tdaia Cecliter
1 tahtal businead aith
cash F 25,oon 25,00 t25,oo

Hnchae gmds F1am. 1 aDp

neo equation 25goDt1o0o 1o0oo t 2 5a0o

3 &ald to AoanA8co 18oo+150o = -3aD

Hax15m
nes equalion 25,0+8206 t15o aooD+ 24, toD

41t0thdrno hor
husines -5az -5a
Final Eauadian 2.an B2an+ 150n e lazaDt 19,3 n
Tota 29, Fgo_ 29,7aD
S.nolranhactiornAets = liabilities +Cabita
Cash tAtock tfwnitPer fuwmitee
1 Stahtelbusines ith
cash goods lovooo¢2oc0 t1,20, aOt

Sold goads 12 oloo 2am.

neuo eqlalion 1,12,ouo tloa0o t1, 22, oD

inchaac funoituhe t3amoalE 3aorDt-

Eina ealation 112,cmtlamntan3arent1,22,c
Total 1, 52,0OO=1,52,ooD
 iate

S. o Tyamsaction Asets =, lebjities tCapital

outstadag outstmu ng
Cash teyemtbrent ge)t Entehe4

1 Stated bubivess Soood 50, aoo

salanies paid -2.a0 -2acn

ne w eqtt on 48,ao0 t 8,covo

200 200
3 aqs oulsladig
ne eajlation 18,ooo 200 t7,8o
Interest due but
na baid
ne eauatiin 48,DOO 200 tloo +47,to
=
+1So
Ret paid in -150

aduamce
FinaleanationT,85o t150 = tloo + too
Iotal 48,o00 98.a0D.
 clasGMALe
Dote

S.no 1amdactien ABets iabilities +Capltal

CashtAtock Credider tuttending1et
1 atarted busines Loit
Cash 18,a0D 18, ooD

Runchase gds n credt-5on ttom 2am

me eauatien |130o0 co0 2.g00 +18ao

HaD-2m
neóeaMation 17,oDD-t4,600=2.o00 +19,6.co

ret paid dedtcautstaadEm- 20D =200

Final 16.co0t4600 =2ott2c0 t18.uan
Total 20,6a0 20600
 clhssMc

Dale
)pay

S.no Tramsactiom Assets =liabilites +Capial

Cash teeaidt stockCreditor
&tartel busines 6ooo

2Paicdhest -5aDt5a0
ne eauction 54,500 t 5o0 +6 ao

3 ) Parchael good -3aooo +3oo

iOncxedit- +2aoa 2am
neo eauation 29,500 t500+ 50,OUD= 20ooo +60o

4Soldgords -2a2ooD
new eauation59,500+So0 + 3ooo 2.o00o +tora

5 Saay paid So0 500

ii Salaautstasnlig-
new eaation 5,oo t5oD3ocooE 2oooo+Lo t69, 400

6eaught mateycle -5ooo -5000

Final eAjLation54aoo+50nt3ozze 2ooo0tloD+64,1oo
Total 84, 5oo =84,5o0

Foistadeng balaty
nou ecievecl- -1an lan-
new equat ion |53900 t5oo t3oooo =2 o0oo +64,10o

8 Aclvance rent no
beccoaedue- -500 50D
ne eaation53,100 3aoaoa2aoo +63,9aad
Totol 83,00 83,90o
 MALe

1
S.mo Tranbaction ssets dinbilities+ Capital
C a s h+ Accwret
Adnxe coenidaian
1 Stated business 6ovoD 6o000

rent ecieved2.cu 2.aao

neus equat ion 62,ooo 62,ovo
3Accxueed Lrtehest +5an 5ap
neus eajuat ion 62,ooo t 5op t62,5oo
Komissiornrecieved 1.ano t625.ac
med eauation 63,ooD +5od lood +62, 5ao

Amolumt Loithataue-Soo
Final equatian58,con t 5aD =La7o t 52,5ao
Total 58.5g0 58,5o0
 a14
S.no TYamloction Asds nbilties+Cabitas
a h +tack toizacediter
1 Stanled buiness 1,a po

a)Pudrchoed qocds-20,c+2co
Pu~ehac m LYeditt +3am-
new eauatien o,pD t 5 0 , 30,o +1,,
3 Sld goods Jor cash A
edit
neuzeapotion.2,coi25,c0 t18,m3opmt1,05,
Poicd alazies -2am -8, coo
Final eauation azz 125,0cooik.cm30.c i 97200
Total 27-g0
 645

S.no Tramnsior Amets lbilite +copitsl

kaancet shukrnchthhiatuiturele.z
iortpd Bureu Spmi,apm thmtipm t50, t360, o0o
2Lstotaupat. eczdinahm 222 +2aor
ne eayation +3,62, o|
2pictin.ca1acra- Le,cadD
neus bayoton . pm tlonm t 1sm t1,0om t 5pmtIlam =
+3,52,o
-Lo.gro
nes eatalcn5p topateprotop t5epr t iioo -

t 3,12, ovo
52rtbratn.dsuiip.
he euotion s\ptprnt epo tepa t5,07e tll,p t31200o

res eayntion 51,cmtlmm+3t1Gom+5opmetlpoo tke t3,42,ooo

Reciesedcothpmsupaiga -lo

ical tayatian Lmtimn2s.mtaamsseil -+3,12,0

Totol= 3,422zo 342,go
 classMte
Data
Page

Q16

S.no Tramaactions Asts licabilities tCapital

Buld Secuy
ashtBamk tfwmre tstacktDebar=Creditor t apad
1,
50, a
1 sta-ted busimes 1, So,oD

2 en Bamk accaut25m425.am
new eauation ,25,0o0 t25,0oo t1,50,a00

15o,om t50 ovo

7Soca +2,co,a0D
neu eauation 25.pt

neu equaton 125,000 +Som tln 200,Cos

5 adkhdhase on.cradit Sac

50,0o + 2,co,c
neut eauation 25,coot S,000 tlagot Sopro

50D
6 Catge pail 5ao
50,0o0 +99,5c
new equation 2,5oot75,cro tlamootSopoe
oods sold toshyam
n cyedit_
+3goo
21,5oot5po tl0caratso4 oo So,ooD t 2,02, 500
neuo eauation

+1ooo
8 Reieved Rent peaomtemedt tiao_
5ocoo t 2,03, Soo
neus eauation 25,Soot75oeotlooot11o00 4c

Recieved 8ecwi 1, So
plepasit roha temat Lsm
t 2,oB Drot, Soo
nes euation 27,p0t 5ptl0oa+1or t+9o 50,0oo

Pdrchase talionahy10
-l0o
10 + 2,c8á,lod +, SOD
neu eaation 2900+75otlomet 94,oooHao50,0oD
 AMALe.
pale

neo eauation 26,920t amt laoown+4p0 +9moo,o t500 t 2,03, 1oD

Inveat in shahes | 5o000

2% 425o00 t41pot90ma So,ooo t1, Soo t153,100
neneatation
12 Recieve iniehest t200
new eaualioh kzaa+25,0mn.t_HIho t9ovoo,ooo Soo t , 53,6o0

13 raesh cahital 25za 25.ao

neoeuetion210t25p0mt14aatazSo,oot1,SaDA178, 600

14 desboyd bykive Sap -So0

Einal ealation 52,10o1 25020 43,S0 tIom= 50000t ISco t78Lco
Total- 2 2.9,6oo 2,21,6co
 Capital 3,00, aoo
Linbilities 5o,oop
Aa +o, ooo

Auecs= liakilities + Cabital

2,30,aoo++Scoto
2,80,cD
18
obening Capital =
30, o o

Ases=50,ooD
iabilitie= 10, ooo

Capital =
Aes licbiltie
o, oro

Pralit = Clasing capital - qering capital

0,o0030,aoD
10, ouO

021
Prayit = Revenue - enpenbk

50,ooo - ,ooo
10,0oo
ssets = Capital + lobilitie
50,o00 + 25,coo
75, aod
a22

Cabita = 75,oo
uabilitis =15,oro
Auets = capital tliabilitie
75,000 t15,o
90, cuD

as =, too
casing capinl= 75,oD-1,3co -Bo0
t2, ScD

Awets = }2, 5oDt 15, 0D

8 , 5oD
a23.
+Prolit- lass) Drauoig +ad cab
tapital=derig cap
-

a Clasing
Elo,coo 5,oro oro

= l , oo

8closing cab 15, ooD+3coo

8, co
cap +cdding lobiltie
clobing
clabing asitlz clasing
18,cro+ 2, Soo
20, Soo
-
 Date
Page

&24
Colsing Cab. = Calsing Aet -Liabilitie

2,ogco 6, 0oD
1,94,c0d
Colbing cap= obening cap t 20,p00 t20,00s
L,14, oo = ening ca t 28 cor

pening cob= 1,14, ooD 28, cm

=1,66,ooD

25
Opeming Cab 25, oD
Addttional cap = 12,Sco
Draoings = SoD

Clasing assets = 75, oos

Lon = 12,Soo

closing assets= captital tLiabilities

5, ooo cap + 12,5co

capE 62, Soo

Prait=cbsing cab +Drauoing Aadationalcab- Hemng cob

62, Soot7,5oo-12,5oD 25, OTo.
32, 5o0.
 Mome worR
Dn2316/2

ustodon-4
Trasaction Asets liabilitiez +Capitl
oted buine lco,c
2hehase apd
nen eaotion oztSam
Prchald Jukad
neaeaatico5omi5mtiope

sdgoeds LatngEn=252
D eayudion 25 125cc0tim=22m ia,m

Fical eauationEi25zzin
Total 10,0To 10 Co

SAT
4

Aetz =Fs,2
Creditor = 1,0,07
Loan = 1,502 J abtteg=z,35, oo
Asset labilidies +apital
5,c0,=2,50,2a t akitel-
Capital 32,50,czo
 elssmate
bate
Page

8.calbital=2,aojpo

Prafit =_Reveralue-EXp@n Seb

E5,00,0uO-4,0D,00D

Assets_apital + iability
2,00,000t1,So-ooo
3,50, ao

a)pemingcabital=F5o,

Clasing assets =_65,co

Liabilitied = 6,o0o

Assets =Liahilitiet Capital

65,a00= baca tcapital

clasing Capital= 5 B9ou

Profit= 5cop-50,azo-5.caot2aa
E6,coo

Profit=_colsiag cab-qpening ab-Add cop t Drawings

12to
 Pa

Aets Liabilities t capital

20co0=15,coo

Assets Liabilitiestcapital
5,cao +lo,00O
15,0co

Assets = Liabil.ities tCaprtol

2,OOD
 Date .
Page

&3

Traatdtiau
AL&ets Lebilities tCapitol
S no

1 Aet statel usiness20po0

chmed nitune m t2m

20,co0-
neLo equatian 8,a t2mo

2A0
3 Reataid 2n)
neug eauation1Z&t2o 19,8op

3.an3az
uhchaladgodh antrait
3 a +19,8am
nen calalion,Bo t2aant 3,c

5 Sald gaod (2
Final eauat on 28o t20oo t 1oco = 3ao + 22,8co
Total 25, 8co 228c
 ASSMALe
pate

S.120 Tardactin AAets LiabilitiedtCapital

asb+stock ifeit ceddets
komcad busine5aae 5oaoo

chaeigdd
esauatic 2,a 3o,cn= 5o,cn

dan codi -20m 20,cre

eEllaiiun tSoo 2o,ao t5oza

ldaaad 20,coa
20.cco t52,20o

2
nei£akaicn32,m+io,m+2,m 22,cro +52,co
i hia crediois.
neeuatian Ent t2mZco t62,GC

inaeailb.zioznt2s T00t 51 coe

To 58 c00
 lassmate
Date
poq

S.no TYamsoaction Aets Liobilitind +Capital

CaltStack machind
statad businessHoco Fo,c0o

axchanan cvadi 18,ca

neus eauation o,am t18,auo 18,o00 t to,ao

3 i.madeto cradda_17,5n tS
neLgeaIuation52,5o0t18,o +0,5cO

cbosel machinehs2op -2anon

eo eajuatlon-32, Sootl8,ooo t20p0d= tto, Soo

5 0ebicodioa
Final L32,Son tL8,.c00t1Ram 685D-
 lassmabe

page

12

Sno yanbaction Mets Liabilitjakt

outktadng
capit
moto
ashtank i stok tfwmduetegendidorst 1et
onenced businesd 50,o0o

id inta Bamk
ne eauation opoo tocn 5o,aoo

20000

Puzchaed goods am) 30a0e

30ao +5apo
neuy eauaLion 20,atlopm-t5op
Laoc
sald good Lo,cD (30m
6o,ouD
neo auaiion60 alo.ao t2a

5Ret_paid (Sn (Soo)

new_eauatioh59520 tlaDt 2o,pm 30,aco t59,Bo

6Rerat aulstaadung
ne_equation51,San tlo,arDt29am 30,o0o tlao t59, oo

ughHtfuuitere on Lalit.
neuL eualion 59,Scoth.oD tlopmt5am 35,coo tlao t59,loo

2-aut Relrighate lsezm)

hfu eauaiion 5Sot10,2Dt20,000t Samo=35c0o tlan t5}, to

chose lox.cuple ho,pco

Fina eaation 3on.tlo.am+2am tSia35ct lo+5 to
81,500 8 , 5ao
 ASSP4Lc

13

S.no TYamdaction AsA ets Liabititietcapital

autstodin

Lasht stach CueditehA Reat

1 stated budiness5q.coot 3,om

Lutnchadadgaa aa) 2oco

neu eaLuation 20,00 Bo,am 20,0 Bocen

sald gaala 55.amtHa.m) 5

ne eajuation 5,on0 Ho,au =20,co +95,cm

Othdheua Calh-am)
neo Cquationl65,pao t Ho,azo = 20,co0 Rsac

5 autstaadin
Final euatian65.000 t Ho.ca =20o t2 t83.cro
Totad Lo5.ggo=| LOScop
 clssmate
Date
Page

Bracticalproble
18
AJAets= 130,a
netuoxth o,ao
net orthE Alet2- liabilties

Liabilitie =Alets - netuorth

1,30,0cro 0,aoo
50,00D
&20
LiabilHies= Bo,oao
CapitalA&keti -1,4o,aan
AMets z Liabilities + Capital
Bo,cooà1,10,0DD
EF 2, 20, OD

Tatal AJet =15,m,aoo

Capital= la, So, ad

Liabilitied Asets-capital
E IS,co,azo- lo,So Cz
4, 50aaD
 elAsSnAte
Date

Paga

HOTS

Q Noa tramdaction_Lam nlychamgg

the Accouating Eauation
bui caMnot bxeak it

IncYease Cash by12,5coRecvease stock byZlo,co

amd incYease_Capital by F2,5c
&3 3, 50, 020

Q5 ASsetsE OuwanbhA
FauitstLiabilites
4,So,azo 0uOeA Equity+2,00,CO0
OLdnch'sEauty2, 50,a0
aH Itis an autstamding enpensetilhe ou in
accoluing eauation as deduction2om capital ard
as an_Quistamdiug Exleanse on liabiltios
8ALets =Caaita
Multiple Cholce Questlons (MCQs)
Helert the rorreet allernalive:
(i) Which of the following equation is correct?
+ Capital Liabilities. (bY Assets -

Liabilities =
Capital.
(a) Anmeta =

Linbilities=Capital. (d) None of these.

(c) Aamestst
(u) Which of tho following is correct?

Arts Linbilities Capital

71,25,000 6,60,000
7,85,000
b) 8,20,000 2,80,000 11,00,000
ey 9,55,000 1,15,000 8,20,000

(d) 75,42,000 6,54,000 1,12,000

 for
personal
ie
se
will ...
Cash and
16
Amount
wthdra
nn
by
pnpraeror

Decrease
None of these.
Capit Accounting fquation
on)

of the
o u t of the
fhu.
follging? 5.17
N o(hange
t 1s
uorrect out
norrect

Assets = Liabilities Ein-the blanks with appropriate uords

eyuatnu An Accounting Eaquation is based
the l-e principle
a n t i n g

a ) Liahktrms A s s e t s - ( a p i t a l
(d) Assets on

iabilisitites+ The equity

Whah
ia of the owner
is cnlied
(i Asseta loaliq-+Laital Cabtal.
Laabithities

capital
the
ofthe proprietor i
Aswis

30URk
the
tot
e
Caprita)
firm are
7,0N i Goods purchased on credit will
ofa lend to
te
The
ladlhties

o 10.00o. in.TeAe in stock and creditors.

()Amount withdrawn by proprietor for personal
aetsare
() None of these (u) Goods sold on credit use will decrease Cash and
a) 7.00
can:
costing? 20,000 for 24,000 will Capit ak
increase total assets
c 4 . 0 0

Ist April,
2013 with a
of 6,00,00o (vid The liabilities of firm are ?
b
on

S0O000 andliabilities 50,000. Findo On 3lay a

1,50,000; the capital of the
earned80,000,
busines
andi
(d
Foommencvend

worth
?800.000

is doang the total assets proprietor ia 7.00,000 Ineome

04his
asets
were
(b) T2,00,000 (vii) If the Owner's Equity is are9,30,auo
2,40.000 and other
(d) None of these. 60,000, total assets of the firm will be liabilities are ? 1,20,000. cash in hand i
by (ix) If closing capital is ? 2,50,000
and
3,60,0ra
in one
asset is
acrompanied

80,000, the drawings during the year were ? 40.000). protnts

opening capital was2,10,au
(ew) An increase

another asset.
(6) increase in a liability
Decrase in
A l l of these. Ans.:() Dual Aspect; (in
ia) Capital; (ii) Capital. Liabilities:
Increase incapital. ()
Copital; (vi) R 4,000; (vi) ? 9,30,000; (Uii) ? increGae (it)

may lead
to 3,60,000 (u) 2. 10,.000
Decrease in one iabihity Very Short Answer Type Questions
ta) (b) Increase in
a) Derease in an
asset.
another liabi .1. Briefly explain the Accounting
d) None of these. Equation.
oEither (a) (6). Ans. The accounting equation is a
or

)Purchase ofmachine by
cash means liabilities of a firm are equal,mathematical equation which shows that the assets and
i.e., Assets Liabilities +
and decrease in liability. Aspect Concept of
=

Capital. It is based on Dual

(a) Decrease in asset Accounting
decrease in asset. Q.2. What is meant by owner's capital?
Increase in asset and Ans. Owner's capital means balance
c Iacrease in asset and
decrease in liability. standing to the credit of Capital Acocount of the proprietor
(d Decrease in asset and increase in capital.
Q.3. Give an example of decrease in an asset and decrease in a
Ans. Cash paid to a creditor. liability.
() Payment to a creditor means
Q.4. Give an example of a transaction where an asset will increase and aiso the
a) Ipcrease in asset and decrease in liability. Ans. Goods purchased on credit. liability
Decrease in asset and decrease in liability. Q.5. Give example of a transaction where an asset and owner's capital wi!l
an

(c) Decrease in asset and increase in Ans. Capital introduced by the proprietor. increase
liability.
(dIncrease in asset and increase in liability. Q.6. Give an example of a transaction due to which owner's capital and an asset will decrease.
Ans. Goods taken by the proprietor for personal use.
Ans:) (6); (i) (a): (ii) (6); (iv) (6); (o) (6);
(v) (a; Q. 7. Which transaction decreases one asset and increases another asset?
(vii) (c; (ir) O, Ans. Amount received from a
debtor
Objective Type Questions Q.8. Give an example of a transaction which increases one liability and decreases another
1 State whether the Ans. Acceptance of Bills Payable.
folowing statements are True
or False: Q.9. Give an example of a transaction which has effect
Decrease in one liability on two items on the assets side
may lead to decrease in Ans. Sales of goods on credit.
(i) Difference
between Total Assets and another liability. Faua
Q. 10. Indicate how Accounting Equation is affected if machinery is purchased for cash?
External Liabilities is Net Worth. Tvuk
e
(iw) Purchase of
O
gos On credit
means increase
in asset and
Ans. It will result in cash being reduced and Machinery Account
being inereased.
computer for office use increase in liability. Q. 11. Indicate how
how Accounting Equation is affected if cash is reived against services rendered"
(o) Sale
of machinery at lo6s will will decrease the
amount of capital.
Accoung
Ans. Cash increases and so does the capital.
decrease the Fae 12. Indicate how Areounting Equation is affected if payment is made to a ereditor
Ans.: () False; amount of total assets. . Ans. Cash decreases and so does the liability (ereditor).
(i) True; (iii) True; (iv)
False: