Accounting Equation Questions
• Anil had the following transactions:
1. Commenced business with cash ₹ 50,000
2. Purchased goods for cash ₹ 20,000 and credit ₹30,000
3. Sold goods for cash ₹40,000, costing ₹30,000
4. Rent paid ₹500, salaries ₹5,000
5. Rent outstanding ₹100, salaries outstanding ₹1,000
6. Bought furniture for ₹5,000 on credit
7. Bought refrigerator for personal use ₹5,000.
8. Purchased computer for cash ₹20,000.
9. Cash withdrawn for personal use ₹10,000
10. Interest on drawings charged ₹500 and the interest on capital ₹1,000.
• Prepare accounting equation of the following transactions:
1. Manu started business with cash ₹1,00,000. Opened a bank account and transferred ₹4,00,000 from his savings account
2. Purchased a building from Sohan for ₹12,00,000 paid by taking a loan from SBI ₹10,00,000
3. Paid interest on loan ₹20,000 and instalment of ₹1,00,000.
4. Purchased goods from Rohan on credit ₹1,00,000
5. Goods returned to Rohan costing ₹20,000
6. Sold goods costing ₹40,000 for ₹50,000 on credit to Ram.
7. Took goods from business for personal use ₹10,000
8. Accrued interest ₹5,000
9. Commission received in advance ₹20,000
10. Cash received from Ram ₹10,000
• Show the accounting equation on the basis of the following transactions:
1. Mukesh started business with cash 80000
2. Purchased good for cash 28000
3. Purchased goods on credit 20000
4. Purchased furniture for cash 6000
5. Paid rent 500
6. Withdrew cash for private use 3000
7. Sold goods on credit (cost price 30000) 40000
8. Paid to creditors 15000
• Prepare accounting equation from the following:
1. Started business with cash 100000
2. Purchased good for cash 20000 and on credit 30000
3. Sold good for cash costing 10000 on credit costing 15000 both at a profit of 20%
• If the capital of a business is ₹70000 and liabilities are of ₹40000 rupees calculate the total assets.
• From the following information, calculate the total assets of the business: Capital rupees ₹400000; creditors ₹300000 revenue earned
during the period ₹750000; expenses incurred during the period ₹200000; value of unsold stock ₹200000.
• A commenced his cloth business on 1st April,2021 with a capital of ₹30000. On 31st March 2022 his assets were rupees ₹50000 and
liabilities were ₹10000. Find out his closing capital and profits earned during the year.
• Calculate total liability if:
➢ Owner's capital in the beginning is ₹60000.
➢ Creditors at the end is ₹50000.
➢ Revenue during the period is ₹70000.
➢ Expenses during the period are ₹65000
➢ Also calculate amount of owner's capital at the end
• X started a business on April 1,2021 with the capital of ₹50000 and a loan of ₹25000 taken from Y. During 2021-22, he had introduced
additional capital of ₹25000 and had withdrawn ₹15000 for personal use. On 31st March 2022 his assets were ₹150000. Find his capital
as on 31st March 2022 and profit made or loss incurred during the year 2021-22.
