Q. No. 1 Mr A had the following transactions. Use Accounting equation to show their effect on his Assets, Liabilities and Owners' 1 2 3 4 5 6 7 8 9 10 11 12
Started business with cash Rs 5,000 Purchased goods on credit Rs 400 Purchased goods for cash Rs 100 Purchased furniture Rs 50 Withdrew for personal use Rs 70 Paid rent Rs 20 Received interest Rs 10 Sold goods costing Rs 50 on credit for Rs 70 Paid to creditors Rs 40 Paid for salaries Rs 20 Further Capital invested Rs 1,000 Borrowed from Mr B Rs 1,000
Liabilities and Owners' equity
A. No. 1
1 2 3 4 5 6 7 8 9 10 11 12
Cash 5,000 -100 -50 -70 -20 10
Furniture
Debtors
Liabilities Creditors Loan
Owner's Equity 5,000
400 100
400 50
-50
-70 -20 10 20
70
-40 -20 1,000 1,000 6,710
Total
Assets Stock
-40 -20 1,000 1,000 450
50
70 7,280
360
1,000
5,920
1,360
5,920
Q. No. 2 During the month of July, a travel company recorded the following transactions. 1 2 3 4 5 6 7 8 9 10
Owner invested Rs 25,000 to start the business. He paid Rs 500 as rent for the month Purchased a machinery worth Rs 8,000 for credit. Puchased office supplies worth Rs 500 Paid for advertising Rs 750 Paid salaries Rs 3,000 Earned fees Rs 10,000 out of which Rs 2,000 got in cash immediately. Paid Rs 5,000 to the machinery supplier. Used Rs 100 worth supplies. Paid Rs 1,000 miscellaneous expenses through company's credit card
Use Accounting equation to show their effect on Assets, Liabilities and Owners' equity
A. No. 2
1 2 3 4 5 6 7 8 9 10
Assets Cash Machinery Off. Supplies Debtors 25,000 -500 8,000 -500 500 -750 -3,000 2,000 8,000 -5,000 -100
17,250 Total
8,000
400
8,000 33,650
Liabilities Creditors C. C. Loan
Owner's Equity 25,000 -500
8,000 -750 -3,000 10,000 -5,000
3,000
1,000
-100 -1,000
1,000
29,650
4,000
29,650
Owner's Equity
Q. No. 3 On July,1, 2015, Mr D set up a cleaning business by investing Rs 60,000. He reveals the following data for the year. Revenue from services Rs 1,03,000 Rent expense Rs 11,200 Electricity Expenses Rs 42,000 Salaries Expenses Rs 16,600 Delivery Expenses Rs 2,500 Building Rs 66,700 Equipment Rs 25,000 Supplies Rs 2,300 Trade Receivables Rs 17,800 Cash Rs 25,000 Loan payable Rs 34,000 Expenses payable Rs 6,600 During the year he withdrew Rs 4,500 for personal use and made further investments of Rs 10,000 Prepare Income statement and Balance Sheet.
ing data for the year.
A. No. 3 Income Statement
Balance Sheet
Revenue : Revenue from Services
103,000
Expenses: Rent Expenses Electricity Expenses Salaries Expenses Delivery Expenses Profit
Net Profit Rs 30,700
11,200 42,000 16,600 2,500
Assets Buildings Equipment Supplies Tr Receiv Cash
66,700 25,000 2,300 17,800 25,000
Liabilities Loan Pay 34,000 Exp Pay 6,600
72,300 30,700
Total
Assets 136,800
136,800
40,600
Liabilities 40,600
Owner's Equity Capital 60,000 Drawings -4,500 Add Cap 10,000 Add Profit 30,700
96,200
Owner's Equity 96,200
Q. No. 4 On March,1,20xx, Mr R set up an Accounting services business. He reported the following transaction for the month. a b c d e f g h i
Mr R brought in Rs 50,000 worth computer to the business Provided services for cash Rs 23,000 Bought office machinery on credit for Rs 25,000 Billed clients for services Rs 16,000 Paid rent deposit for office Rs 10,000 Collected money from clients billed in (d) above Rs 12,300 Withdrew for personal use Rs 9,000 Paid for electricity Rs 1,700 Paid salary to Office clerk Rs 2,000
Use Accounting equation to show their effect on his Assets, Liabilities and Owners' equity
ction for the month.
A. No. 4
Cash a b c d e f g h i
Debtors
Liabilities Creditors
25,000
25,000 16,000
-10,000 12,300 -9,000 -1,700 -2,000
Owner's Equity 50,000 23,000
23,000
12,600 Total
Assets Computer Machinery Rent Deposit 50,000
16,000
10,000 -12,300 -9,000 -1,700 -2,000 50,000
25,000
10,000
3,700 101,300
25,000
76,300
25,000###
76,300
Q. No. 5 Mr S started a medical services business on September,1, 20XX. He reported the following transactions for first month. a b c d e f g h i j k
Mr S invested Rs 50,000 Purchased equipment on credit Rs 40,000 Took loan from bank Rs 30,000 Gave bill to customers for services provided Rs 15,000 Provided services for cash Rs 18,000 Purchased supplies for cash Rs 3,000 Paid salary to employees Rs 10,000 Paid electricity charges Rs 6,000 Purchased equipment for cash Rs 5,000 Paid part of the bank loan taken earlier Rs 10,000 Paid Dividends Rs 5,000
Use Accounting equation to show their effect on his Assets, Liabilities and Owners' equity
A. No. 5
a b c d e f g h i J k Total
Assets Cash Equipment Supplies 50,000 40,000 30,000
Debtors
Liabilities Creditors Bank Loan
50,000 40,000 30,000 15,000
18,000 -3,000 -10,000 -6,000 -5,000 -10,000 -5,000 59,000
Owner's Equity
15,000 18,000
3,000 -10,000 -6,000 5,000 -10,000 45,000
3,000
15,000 122,000
40,000
20,000 60,000
-5,000 62,000 62,000
Q. No. 6 Mr P set up a Interior Decoration business on Jan, 1, 20XX. His transactions for the month are a b c d e f g h i j k
He invested Rs 50,000 as capital Took a bank loan Rs 25,000 Billed customers for services Rs 14,000 Paid salaries for assistants Rs 5,000 Bought furniture for cash Rs 20,000 Bought office supplies on credit Rs 3,000 Received cash for services provided Rs 38,000 Paid fuel expenses Rs 8,000 Paid office rent Rs 4,000 Paid for Office supplies purchased earlier Rs 3,000 Received cash from customers billed Rs 11,000 Analyse the effect of the transactions on the Accounting Equation
A. No. 6
a b c d e f g h i J k Total
Assets Cash Furniture 50,000 25,000
Supplies Debtors
Liabilities Creditors Bank Loan
50,000 25,000 14,000
-5,000 -20,000
14,000 -5,000
20,000 3,000
38,000 -8,000 -4,000 -3,000 11,000 84,000
Owner's Equity
3,000 38,000 -8,000 -4,000 -3,000
20,000
3,000
-11,000 3,000 110,000
-
25,000 25,000
85,000 85,000
Q. No. 7 Mr F set up a Corporate training service. After two months, he had the following balances. Cash Rs 23,000, Accounts Receivables Rs 15,000, Office supplies Rs 6,000, Equipment Rs 20,000 Accounts payables Rs 24,000, Capital Rs 40,000. The following transactions took place later. a Bought a printer on credit Rs 15,000 b Received commission Rs 25,000 c Paid office rent Rs 4,000 d Billed corporates for training services Rs 35,000 e Collected amounts due from clients billed earlier Rs 38,000 f Availed bank loan Rs 10,000 g Purchased office supplies for Rs 7,500 h Paid salary for Office employees Rs 12,000 i Drew for personal use Rs 7,000 j Paid the Printer supplier Rs 13,000 k Paid bank loan Rs 8,000 Analyse the effect of the transactions on the Accounting Equation
A. No. 7
Op Bal a b c d e f g h i J k Total
Assets Cash Acc Rec Off Supp Equipment 15,000 23,000 6,000 20,000 15,000 25,000 -4,000 35,000 38,000 -38,000 10,000 -7,500 7,500 -12,000 -7,000 -13,000 -8,000 44,500 12,000 13,500 35,000 105,000
Liabilities Acc Pay Bank Loan 24,000 15,000
Owner's Equity Capital 40,000 25,000 -4,000 35,000
10,000 -12,000 -7,000 -13,000 26,000
-8,000 2,000 28,000
77,000 77,000
Q. No. 8 After four month of operations, a film company had the following balances on Aug,31,20XX Cash Rs 5,000, Trade receivables Rs 10,000, Equipment Rs 11,700, Films Rs 36,000 Trade payables Rs 7,000, Capital Rs 25,000, Retained earnings Rs 30,700. The following transactions happened during the next month. a Collected money from customers billed in August Rs 4,000 b Paid amounts due on August 31. c Took a loan from Bank Rs 10,000 d Paid assistant's salary Rs 600 e Bought films for cash Rs 5,000 f Bought equipment on credit Rs 20,000 g Received film hire charges Rs 15,000 h Paid rent for shop Rs 2,000 i Paid suppliers Rs 3,000 j Billed customers Rs 3,500 k Paid dividends Rs 2,500 Analyse the effect of the transactions on the Accounting Equation
A. No. 8
Op Bal a b c d e f g h i J k Total
Assets Cash Trade Rec Equipment 10,000 5,000 11,700 4,000 -4,000 -7,000 10,000 -600 -5,000 20,000 15,000 -2,000 -3,000 3,500 -2,500 13,900 9,500 31,700
Films 36,000
Liabilities Trade Pay Bank Loan 7,000
Owner's Equity Capital RE 25,000 30,700
-7,000 10,000 -600 5,000 20,000 15,000 -2,000 -3,000
41,000 96,100
17,000
10,000 27,000
25,000
3,500 -2,500 44,100 69,100
Q. No. 9 The following table shows the effect of six transactions of a company on accounting equation. Write a brief explanation for each transaction.
Balance (a) Balance (b) Balance (c) Balance (d) Balance (e) Balance (f) Balance
Cash 20,000 +2000 22,000 -4,000 18,000 18,000 -1,000 17,000
Assets Acc Rec Supplies Equipment 15,000 9,000 32,000 -2,000 13,000 9,000 32,000 +4,000 13,000 13,000 32,000 +6,500 19,500 13,000 32,000 19,500
13,000
17,000
19,500
13,000
17,000
19,500
13,000
32,000 +5,000 37,000 +8,000 45,000
=
Liabilities Equity Acc Pay Capital 26,000 50,000 26,000
50,000
26,000
50,000 +6,500 56,500
26,000 -1,000 25,000 25,000 +8,000 33,000
56,500 +5,000 61,500 61,500
A. No. 9
a b c d e f
Collected amounts due from past invoices Purchased supplies for cash Billed customers for services Paid suppliers Owner invested in the form of equipment Purchased equipment on credit
Q. No. 10 The following table shows the effect of six transactions of a company on accounting equation. Write a brief explanation for each transaction.
Balance (a) Balance (b) Balance (c) Balance (d) Balance (e) Balance (f) Balance
Assets Cash Acc Rec Supplies Equipment 20,000 52,000 6,800 50,000 -3,000 17,000 52,000 6,800 50,000 +5,000 17,000 52,000 6,800 55,000 +24,000 -24,000 41,000 28,000 6,800 55,000 +10,000 51,000 28,000 6,800 55,000 -4,000 +4,000 47,000 28,000 10,800 55,000 -18,000 29,000 28,000 10,800 55,000
=
Liabilities Equity Acc Pay Capital 43,000 85,800 -3,000 43,000 82,800 +5,000 48,000 82,800 48,000
82,800 +10,000 48,000 92,800 48,000 -18,000 30,000
92,800 92,800
A. No. 10
a b c d e f
Paid Expenses Rs 3,000 Purchased office equipment on credit Rs 5,000 Collected amounts due for past invoices Rs 24,000 Provided services for cash Rs 10,000 Purchased office supplies for cash Rs 4,000 Paid creditors Rs 18,000
