Accounting Equation Class 11 Important Questions

 These are some important questions of Accounting Equation for class 11th . These questions help you to improve your speed in accountancy and these questions are also based on Accounting Equation concepts. I hope you would like to solve these questions and this will help you. We have taken care of every single concept given in CBSE Class 11 Accountancy.

Question-1. Show the Accounting Equation on the basis of the following and present a balance sheet on the last new equation balances:- 

 Manu started business with cash ₹50,000

Bought furniture for ₹500

Purchased goods on credit ₹4000

Sold goods on cash (cost ₹500) for ₹700

 Received rent ₹200

 Purchased goods for cash ₹1000

 Withdrew for personal use ₹700

 Paid to creditors ₹400

 Paid for salaries ₹200

[Ans. Assets Cash 48,100+ furniture 500+ stock 4,500 Liabilities: creditors 3,600+ capital 249,500; Balance Sheet total 53,100.]

Question 2 . Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet :

1. Started business with Cash 1,20,000.

2. Purchased a typewriter for Cash for 8,000 for office use.

3. Purchased goods for 50,000 for cash.

4. Purchased goods for 240,000 on credit,

5. Goods costing 60,000 sold for 80,000 on credit.

6. Paid for Rent 1,500 and for salaries 2,000.

7. Received 800 for Commission.

8. Withdrew for private use 5,000 in cash.

[Ans. Assets: Cash 254,300+ Typewriter 28,000+ Stock 30,000+ Debtors 280,000 Liabilities: Creditors 240,000+ Capital 1,32,300; Balance Sheet Total ₹1,72,300]

Question 3. Prepare Accounting Equation from the following:

(a) Started business with Cash 2,00,000. 

(b) Purchased goods for Cash 60,000 and on Credit 1,50,000.

(c) Sold goods for Cash costing 740,000 at a profit of 20% and on Credit costing 72,000 at a profit of 25%.

 (d) Paid for Rent 5,000.

[ Ans. Assets: Cash 1,83,000+Stock 798,000+ Debtors 790,000-Liabilities: Creditors 1,50,000+ Capital 2,21,000]

Question 4. Prepare Accounting Equation from the following:

(a) Kunal started business with cash ₹2,50,000

 (b) He purchased furniture for cash ₹35,000

(c) He paid commission ₹2000

(d) He purchased goods on credit ₹40,000

(e) He sold goods (Costing 20,000) for cash ₹26,000

[Ans. Assets : Cash 2,39,000+ Furniture 35,000+Stock *20,000 = Liabilities: Creditors 40,000+ Capital 32,54,000.]

Question 5. Mohit has the following transactions, prepare Accounting Equation:

(a) Business started with cash ₹ 1,75,000

(b) Purchased goods from Rohit ₹50,000

 (c) Sold goods on crédit to Manish (costing 17,500) ₹20,000

(d) Purchased furniture for office use ₹10,000

(e) Cash paid to Rohit in full settlement Cash received from Manish ₹48,500

(f) Cash received form manish ₹20,000

(g) Rent paid ₹1000

(h) Cash withdrew for personal use ₹3000

[Ans. Assets: Cash 1,32,500+ Stock 32,500+ Furniture 10,000 = Capital 1,75,000.]

Question 6. What will be the effect of the following on the Accounting Equation?

 (i) Harish started business with cash 1,80,000.

(ii) Purchased goods for cash 60,000 and on credit 30,000.

(iii) Sold goods for cash 40,000; costing 24,000. 

(iv) Rent paid 5,000; and rent outstanding *2,000.

(v) Sold goods on credit 50,000 (costing 38,000). 

(vi) Salary paid in advance 3,000.

[Ans. Assets: Cash 1,52,000+ Stock 28,000+ Debtors 50,000+ Prepaid

Expenses 3,000 = Liabilities: Creditors 30,000+ Outstanding Expenses 2,000 +Capital 2,01,000.]

Question 7. Use Accounting Equation to show the effect of the following transactions of M/s Royal Traders :

(a) Started Business with Cash ₹1,20,000

 (b) Purchased goods for cash ₹10,000

(c) Rent received ₹5,000

(d) Salary outstanding ₹2,000

(e) Received interest ₹700

(f) Sold goods for Cash ( Costing ₹5000) ₹7000

(g) Goods destroy by fire ₹500

[ Assets :- Cash ₹1,22,700 + Stock ₹4500 = Liabilities:- Outstanding Expanse ₹2000 + Capital ₹1,25,200]

Question 8. Prepare the accounting equation form the following:- 

(a) Started business with cash 1,40,000 and Stock 2,50,000.

(b) Sold goods (costing 50,000) at a profit of 25% on cost.

(c) Deposited into bank account 1,80,000.

 (d) Purchased goods from Mohan 80,000.

[Ans. Assets: Cash 22,500+ Stock 2,80,000+ Bank 1,80,000 Creditors *80,000+ Capital 4,02,500.]

Question 9. Prepare Accounting Equation from the following:

1. Started business with cash 75,000 and goods *25,000.

 2 Paid for Rent 72,000.

3. Bought goods for cash 30,000 and on credit for ₹44,000. 

4. Goods costing 50,000 sold at a profit of 25%, out of which 27,500 received in Cash

 5. Purchased a Motor-cycle for personal use 20,000.

[Ans. Assets : Cash 50,500 + Stock 749,000+ Debtors 35,000 = Liabilities: Creditors 44,000+ Capital 90,500.]

Question 10. Prepare Accounting Equation from the following and Balance Sheet :

1. Raghu started business with Cash 1,50,000. 

2. Bought goods for cash 80,000 and on credit for 240,000.

3. Goods costing 75,000 sold at a profit of Half the payment received in cash.

4. Goods costing 10,000 sold for 12,000 on credit.

 5. Paid for Rent 72,000 and for salaries 4,000.

6. Goods costing 20,000 sold for 18,500 for Cash.

[Ans. Assets: Cash 1,32,500+ Stock 15,000+ Debtors 762,000-Liabilities: Creditors 240,000 + Capital 1,69,500; Balance Sheet total 2,09,500.)

Question 11. If the Capital of a business is 1,20,000 and Outside liabilities are 220,000, calculate total assets of the business.

[ Ans. Total Assets 1,40,000.]

Question12. If total assets of a business are 1,30,000 and capital is ₹80,000, calculate Creditors.

[ Answer:- ₹50,000]