Q.

1:- Raghunath had the following transactions in an accounting year:- (Class Work)
(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.

Q.2:- Manish had the following transactions. Use accounting equation to show their effect on
his Assets, Liabilities and Capital? (Home Work)
a) Invested Rs. 15,000 in cash.
b) Purchased securities for cash Rs. 7,500.
c) Purchased a home for Rs. 15,000: giving Rs. 5,000 in cash and the balance through loan
account.
d) Sold securities costing Rs. 1,000 for Rs. 1,500.
e) Purchase an old car for Rs. 2,800 cash.
f) Received cash as salary Rs. 3,600.
g) Paid cash Rs.500 for loan and Rs. 300 for interest.
h) Paid cash for expenses Rs. 300.
i) Received cash for dividend on securities Rs.200.

Q.3:- Write Accounting Equation for the following questions- (Class Work)
1. December 1, 2011, Ajit started business with cash Rs.400,000.
2. December 3, he paid into the Bank Rs.20,000.
3. December 5, he purchased goods for cash Rs.35,000.
4. December 8, he sold goods for cash Rs.6,000, costing Rs.5,000.
5. December 10, purchased furniture and paid by cheque Rs.5,000.
6. December 12, he sold goods to Arvind Rs.4,000.
7. December 14, he purchased goods from Amrit Rs.10,000.
8. December 15, he returned goods to Amrit Rs.5,000.
9. December 16, he received from Arvind Rs.3,960 in full settlement.
10. December 18, he withdrew goods for personal use Rs.1,000.
11. December 20, he withdrew cash from business for personal use Rs.2,000.
12. December 24, he paid telephone charges Rs.1,000.
13. December 26, cash paid to Amrit in full settlement Rs.4,900.
14. December 31, paid for stationery Rs.200, rent Rs.500 and salaries to staff Rs. 2,000.
15. December 31, goods distributed by way of free samples Rs.1,000

Q.4:- Show an Accounting Equation on the basis of the following transactions:- (For
Practice)

(i) Sunil started business with cash 1,50,000

(ii) Opened a Bank Account by depositing ₹ 25,000 out of cash

(iii) He sold his personal car for ₹ 50,000 and deposited the amount in the firm’s Bank
Account

(iv) He purchased a building and furniture for 1,00,000

(v) He purchased goods from Ram on credit 50,000

(vi) He paid cartage 500

(vii) He sold to Shyam on credit goods costing ₹ 6,000 for 9,000

(viii) Received rent from tenants 1,000

(ix) Received security deposit from tenants 1,500

(x) Purchased stationery for cash 100

(xi) Invested in shares (personal) 50,000

(xii) Received interest in cash 200

 (xiii) Introduced fresh capital 25,000

(xiv) Goods destroyed by fire 500

Q.5:- Anil had the following transactions- (Class Work)

1. Commenced business with cash Rs.50,000
2. Purchased goods for cash Rs.20,000 and on credit Rs.30,000
3. Sold goods for cash Rs.40,000 , costing Rs.30,000
4. Rent paid Rs.500, Salaries Rs.5,000
5. Rent Outstanding Rs.100 and Salaries Outstanding Rs.1,000
6. Bought furniture for Rs.5,000 on credit.
7. Bought refrigerator for personal use Rs,5,000, paid cash.
8. Purchased computer for cash Rs.20,000
9. Cash withdrawn for personal use Rs.10,000.
Carry out a transaction analysis of above transactions.

Q.6:-

Q.7:-
Create an Accounting Equation on the basis of the following transactions:
i. Commenced business with cash Rs.50,000, goods Rs.30,000 and furniture Rs.20,000.
ii. Sold goods to Ajay on credit costing Rs.4,000 for Rs.5,000.
iii. Sold goods for cash costing Rs.12,000 for Rs.16,000.
iv. Purchased goods for cash Rs.40,000.
v. Purchased goods on credit for Rs.20,000.
vi. Paid rent Rs.3,000 including Rs.2,000 in advance.
vii. Paid salaries Rs.2000.
viii. Sold goods costing Rs.8,000 for Rs.10,000.
ix. Salaries outstanding Rs.1,000.
x. Charge depreciation on furniture Rs.500.