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Accounting Equation Test

The document presents an accounting equation test for the 2024-25 period, consisting of multiple-choice questions and practical scenarios related to capital, profit, and the effects of various transactions on assets and liabilities. It includes calculations for sales, charity, goods returns, and the impact of transactions on the accounting equation. The test aims to assess understanding of fundamental accounting principles and the maintenance of balance in the accounting equation.

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mcsworkshop777
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21 views1 page

Accounting Equation Test

The document presents an accounting equation test for the 2024-25 period, consisting of multiple-choice questions and practical scenarios related to capital, profit, and the effects of various transactions on assets and liabilities. It includes calculations for sales, charity, goods returns, and the impact of transactions on the accounting equation. The test aims to assess understanding of fundamental accounting principles and the maintenance of balance in the accounting equation.

Uploaded by

mcsworkshop777
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCOUNTING EQUATION TEST |2024-25

1. Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash. Capital of Rs -------------will be
increased in accounting equation. 1

2. Goods Given as charity (Sales price 500) of Rs 450- 1


(a) Increase in debtor by 500 and increase in stock by 500
(b) Decrease in cash by500and decrease in stock by 450
(c) Decrease in stock by500 and decrease in capital by 500
(d) Decrease in stock by450 and decrease in capital by 450

3. Sold goods for cash costing 20000 and on credit Rs 30000 at a profit of 25%. Profit is – 1
(a) Rs 2500 (b) Rs 3750 (c) Rs 12500 (d) Rs 6250

4. Capital decreased when:- 1


(a) Goods sold at a loss (b) Rent received
(c) Goods purchased (d) Machinery purchased

5. Goods returned by customer is- 1


(a) Increase in cash and increase in stock-
(b) Decrease in cash and decrease in stock
(b) Increase in creditor and increase in stock
(d) Increase in stock and decrease in debtor

6. Use accounting equation to show the effect of the following transactions of M/s Royal Traders: 4
(a) Started business with cash Rs.1,20,000
(b) Purchased goods for cash Rs. 10,000
(c) Rent received Rs. 5,000
(d) Salary outstanding Rs. 2,000
(e) Prepaid Insurance Rs. 1,000
(f) Received interest Rs. 700
(g) Sold goods for cash (Costing Rs. 5,000) Rs. 7,000
(h) Goods destroyed by fire Rs. 500

7. Analyse the effect of each transaction on assets and liabilities and show that the both sides of Accounting
Equation (A = L + C) remains equal : 5
(i) Introduced Rs. 8,00,000 as cash and Rs. 50,000 by stock.
(ii) Purchased plant for Rs. 3,00,000 by paying Rs. 15,000 in cash and balance at a later date.
(iii) Deposited Rs. 6,00,000 into the bank.
(iv) Purchased office furniture for Rs. 1,00,000 and made payment by cheque.
(v) Purchased goods worth Rs. 80,000 for cash and for Rs. 35,000 in credit.
(vi) Goods amounting to Rs. 45,000 was sold for Rs. 60,000 on cash basis.
(vii) Goods costing to Rs. 80,000 was sold for Rs. 1,25,000 on credit.
(viii) Cheque issued to the supplier of goods worth Rs. 35,000.
(ix) Cheque received from customer amounting to Rs. 75,000.
(x) Withdrawn by owner for personal use Rs. 25,000.

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