Accounting Equation Solutions TS Grewal Class 11 [2025-26]
Question 1:
What will be effect of the following on the Accounting Equation?
(i) Started business with cash ₹ 45,000
(ii) Opened a Bank Account with a deposit of ₹ 4,500
(iii) Bought goods from M/s Sun & Co. for ₹ 11,200
Solution
| S.N. | Transactions | Assets | = | Capital + Liabilities | |||
|---|---|---|---|---|---|---|---|
| Cash + | Bank + | Stock | Capital + | Creditors | |||
| (i) | Started business with cash ₹45,000 | 45,000 | – | – | = | 45,000 | – |
| (ii) | Opened a Bank Account with a deposit of ₹4,500 | -4,500 | 4,500 | – | = | – | – |
| New Equation | 40,500 | 4,500 | – | = | 45,000 | – | |
| (iii) | Bought goods from M/s. Sun & Co. for ₹11,200 | – | – | 11,200 | = | – | 11,200 |
| New Equation | 40,500 | 4,500 | 11,200 | = | 45,000 | 11,200 | |
Question 2:
Show the Accounting Equation for the following transactions:
| (i) Gopinath started business with cash | ₹ 25,000 |
| (ii) Purchased goods from Shyam | ₹ 10,000 |
| (iii) Sold goods to Sohan costing ₹ 1,800 | ₹ 1,500 |
| (iv) Gopinath withdrew from business | ₹ 5,000 |
Solution
Accounting Equation
| S.N. | Transactions | Assets | = | Capital + Liabilities | |||
|---|---|---|---|---|---|---|---|
| Cash + ₹ | Stock + ₹ | Debtors ₹ | Capital + ₹ | Creditors ₹ | |||
| (i) | Gopinath started business with cash of ₹25,000 | 25,000 | – | – | = | 25,000 | – |
| (ii) | Purchased goods from Shyam for ₹10,000 | – | 10,000 | – | = | – | 10,000 |
| New Equation | 25,000 | 10,000 | – | = | 25,000 | 10,000 | |
| (iii) | Sold goods to Sohan costing ₹1,800 for ₹1,500 | – | -1,800 | 1,500 | = | -300 | – |
| New Equation | 25,000 | 8,200 | 1,500 | = | 24,700 | 10,000 | |
| (iv) | Gopinath withdrew from business ₹5,000 | -5,000 | – | – | = | -5,000 | – |
| New Equation | 20,000 | 8,200 | 1,500 | = | 19,700 | 10,000 | |
Question 3:
Prepare an Accounting Equation and Balance Sheet on the following basis:
(i) Gurman Started business with cash ₹ 20,000.
(ii) He purchased furniture for ₹ 2,000.
(iii) He paid rent of ₹ 200.
(iv) He purchased goods on credit ₹ 3,000.
(v) He sold goods (cost price ₹ 2,000) for ₹ 5,000 on cash.
Solution
Accounting Equation
| S.N. | Transactions | Assets | = | Capital + Liabilities | |||
|---|---|---|---|---|---|---|---|
| Cash + ₹ | Furniture + ₹ | Stock ₹ | Capital + ₹ | Creditors ₹ | |||
| (i) | Gurman started business with cash ₹20,000 | 20,000 | – | – | = | 20,000 | – |
| (ii) | He purchased furniture for ₹2,000 | -2,000 | 2,000 | – | = | – | – |
| New Equation | 18,000 | 2,000 | – | = | 20,000 | – | |
| (iii) | He paid rent of ₹200 | -200 | – | – | = | -200 | – |
| New Equation | 17,800 | 2,000 | – | = | 19,800 | – | |
| (iv) | He purchased goods on credit ₹3,000 | – | – | 3,000 | = | – | 3,000 |
| New Equation | 17,800 | 2,000 | 3,000 | = | 19,800 | 3,000 | |
| (v) | He sold goods (cost price ₹2,000) in cash for ₹5,000 | 5,000 | – | -2,000 | = | 3,000 | – |
| New Equation | 22,800 | 2,000 | 1,000 | = | 22,800 | 3,000 | |
Question 4:
Prepare Accounting Equation from the following:
(i) Started business with cash ₹ 1,00,000 and Goods ₹ 20,000.
(ii) Sold goods worth ₹ 10,000 for cash ₹ 12,000.
(iii) Purchased furniture on credit for ₹ 30,000.
Solution
| S.N. | Transactions | Assets | = | Capital + Liabilities | |||
|---|---|---|---|---|---|---|---|
| Cash + ₹ | Stock + ₹ | Furniture ₹ | Capital + ₹ | Creditors ₹ | |||
| (i) | Started business with cash ₹1,00,000 and Goods of ₹20,000 | 1,00,000 | 20,000 | – | = | 1,20,000 | – |
| (ii) | Sold goods worth ₹10,000 for cash of ₹12,000 | 12,000 | -10,000 | – | = | 2,000 | – |
| New Equation | 1,12,000 | 10,000 | – | = | 1,22,000 | – | |
| (iii) | Purchased furniture on credit for ₹30,000 | – | – | 30,000 | = | – | 30,000 |
| New Equation | 1,12,000 | 10,000 | 30,000 | = | 1,22,000 | 30,000 | |
Question 5:
Develop an Accounting Equation from the following transactions:
| i) Mohan commenced business with cash | ₹ 50,000 |
| ii) Purchase goods for cash | ₹ 30,000 |
| iii) Purchased goods on credit | ₹ 20,000 |
| iv) Sold goods (costing ₹ 10,000) for | ₹ 12,000 |
| v) Bought furniture on credit | ₹ 2,000 |
| vi) Paid cash to a creditor | ₹ 15,000 |
| vii) Salary paid | ₹ 1,000 |
Solution
| S.N. | Transactions | Assets | = | Capital + Liabilities | ||||
|---|---|---|---|---|---|---|---|---|
| Cash + | Stock + | Furniture + | Capital + | Creditors (Goods) + | Creditors (Furniture) | |||
| (i) | Mohan commenced business with cash ₹50,000 | 50,000 | – | – | = | 50,000 | – | – |
| (ii) | Purchased goods for cash ₹30,000 | -30,000 | 30,000 | – | = | – | – | – |
| New Equation | 20,000 | 30,000 | – | = | 50,000 | – | – | |
| (iii) | Purchased goods on credit ₹20,000 | – | 20,000 | – | = | – | 20,000 | – |
| New Equation | 20,000 | 50,000 | – | = | 50,000 | 20,000 | – | |
| (iv) | Sold goods (costing ₹10,000) for ₹12,000 | 12,000 | -10,000 | – | = | 2,000 | – | – |
| New Equation | 32,000 | 40,000 | – | = | 52,000 | 20,000 | – | |
| (v) | Bought furniture on credit ₹2,000 | – | – | 2,000 | = | – | – | 2,000 |
| New Equation | 32,000 | 40,000 | 2,000 | = | 52,000 | 20,000 | 2,000 | |
| (vi) | Paid cash to a creditor ₹15,000 | -15,000 | – | – | = | – | -15,000 | – |
| New Equation | 17,000 | 40,000 | 2,000 | = | 52,000 | 5,000 | 2,000 | |
| (vii) | Salary paid ₹1,000 | -1,000 | – | – | = | -1,000 | – | – |
| New Equation | 16,000 | 40,000 | 2,000 | = | 51,000 | 5,000 | 2,000 | |
Question 6:
Prepare an Accounting Equation on the basis of the following transactions:
(i) Started business with cash ₹ 70,000.
(ii) Credit purchase of goods ₹ 18,000.
(iii) Payment made to creditors in full settlement ₹ 17,500.
(iv) Purchase of machinery for cash ₹ 20,000.
(v) Depreciation on machinery ₹ 2,000.
Solution
| S. No. | Transaction | Assets | = | Liabilities + Capital | |||
|---|---|---|---|---|---|---|---|
| Cash (Rs) | Stock (Rs) | Machinery (Rs) | Creditors (Rs) | Capital (Rs) | |||
| (i) | Started business with cash | 70,000 | – | – | = | – | 70,000 |
| (ii) | Credit purchases of goods Rs. 18,000 | 70,000 | 18,000 | – | = | 18,000 | 70,000 |
| (iii) | Payment made to creditors in full settlement Rs. 17,500 | 70,000 (17,500) | 18,000 | – | = | 18,000 (18,000) | 70,000 + 500 |
| (iv) | Purchase of machinery for cash Rs. 20,000 | 52,500 (20,000) | 18,000 | 20,000 | = | 0 | 70,500 |
| (v) | Depreciation on machinery Rs. 2,000 | 32,500 | 18,000 | 20,000 (2,000) | = | 0 | 70,500 (2,000) |
| Final Equation | 32,500 | 18,000 | 18,000 | = | 0 | 68,500 | |
Question 7:
Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash ₹ 50,000.
(ii) Salaries paid ₹ 2,000.
(iii) Wages outstanding ₹ 200.
(iv) Interest due but not paid ₹ 100.
(v) Rent paid in advance ₹ 150.
Question 8:
What will be the effect of the following on the Accounting Equation:
(i) Harish started business with cash ₹ 18,000
(ii) Purchased goods for cash ₹ 5,000 and on credit ₹ 2,000
(iii) Sold goods for cash ₹ 4,000 (Costing ₹ 2,400)
(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200
Question 9:
Show 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) Sold goods for cash (Costing ₹ 5,000) ₹ 7,000.
(f) Gooods destroyed by fire ₹ 500.
Question 10:
Show the effect of the following transactions and also prepare a Balance Sheet:
| ₹ | |
| (i) Started business with cash | 60,000 |
| (ii) Rent received | 2,000 |
| (iii) Accrued interest | 500 |
| (iv) Commission received in advance | 1,000 |
| (v) Amount withdrawn | 5,000 |
Question 11:
Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
(i) Commenced business with cash ₹ 60,000.
(ii) Paid rent in advance ₹ 500.
(iii) Purchased goods for cash ₹ 30,000 and credit ₹ 20,000.
(iv) Sold goods for cash ₹ 30,000 costing ₹ 20,000.
(v) Paid salary ₹ 500 and salary outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 5,000.
Question 12:
Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash ₹ 50,000.
(ii) Paid into bank ₹ 10,000.
(iii) Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.
(iv) Sold goods for cash ₹ 40,000 costing ₹ 30,000.
(v) Rent paid ₹ 500.
(vi) Rent outstanding ₹ 100.
(vii) Bought furniture ₹ 5,000 on credit.
(viii) Bought refrigerator for personal use ₹ 5,000.
(ix) Purchased motorcycle for cash ₹ 20,000.
Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.
Question 13:
Prepare an Accounting Equation from the following:
(i) Started business with cash ₹ 50,000 and goods ₹ 30,000.
(ii) Purchased goods for cash ₹ 30,000 and on credit from Karan ₹ 20,000.
(iii) Goods costing ₹ 40,000 were sold for ₹ 55,000.
(iv) Withdrew cash for personal use ₹ 10,000.
(v) Rent outstanding ₹ 2,000.
Question 14:
Show an Accounting Equation for the following transactions:
(i) D. Mahapatra commenced business with cash ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000; machinery ₹ 1,00,000 and furniture ₹ 50,000.
(ii) 1/3rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash.
(iii) Depreciation on machinery provided @ 10%
(iv) Cash withdrawn for personal use ₹ 10,000.
(v) Interest on drawings charged @ 5%.
(vi) Goods sold to Gupta for ₹ 10,000 and received a Bill Receivables for the same amount for 3 months.
(vii) Received ₹ 10,000 from Gupta against the Bills Receivables on its maturity.
