ACCOUNTS TEST

Accounting Equation Marks: 25

Q.1. Show the accounting equation on the basis of the following transactions :
(a) Jeet commenced business with Rs 11,50,000.
(b) Wages paid Rs 4,000 and outstanding Rs 6,000.
(c) Goods purchased for Rs 80,000.
(d) Computer purchased from Star Computers worth Rs 30,000 and paid half the amount in cash.
(e) Invested Rs. 90,000 into the bank.
(f) Goods purchased from Vaibhav for Rs 8,000and made the payment by cheque.
(g) Purchased a building for Rs. 6,00,000 and the payment was made by cash.
(h) 1/2 of the stock available was sold to Mohit at a profit of 25% on cost. (8)

Q.2. Mr. X commenced his business on 1st April, 2008 by introducing capital of Rs. 50,000. During the year,
following transactions had taken place. Amount (Rs.)
(a) Bought Machine for cash. 20,000
(b) Purchased goods for 24,000
(c) Sold goods (costing Rs. 9,500) to Om for cash. 20,000
(d) Purchased goods from Azhar. 14,000
(e) Introduced additional capital. 16,000
(f) Commission received in advance. 2,000
(g) Paid to Creditors Rs. 10,500 in full settlement.
(h) Bought Computer for his personal use. 10,000
(i) Rent paid for the year. 10,000
(j) Payment for stationery 400
(k) Sold goods (costing Rs 12,000) for Rs 16,000. Out of which Rs. 2,000 received in cash.
Show the above transactions in accounting equations. (12)

Q.3. Give an example for each of the following types of transactions:

(a) Increase in asset, increase in liability.
(b) Decrease in asset, decrease in owner’s capital.
(c) Increase in one liability, decrease in another liability. (3)

Q.4. Y started a business on 1st April, 2013 with a Capital of Rs. 2,00,000 and a loan of Rs. 75,000 from the
bank. During the year, he had introduced additional capital of Rs. 60,000 and had withdrawn Rs. 36,000 for
personal purposes. On 31st March, 2014 his assets were Rs. 3,80,000. Find out his Capital as on 31st March,
2014 and profit earned during the year 2013-14. (2)

Proprietor: Murtaza Jamali

Mobile: 8976752676 Email: murtazaj.52@gmail.com
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