G11- ACCOUNTANCY-CHAPTER END ASSESSMENT- ACCOUTING EQUATION

1. A motor vehicle of ₹ 1,00,000 is depreciated @10% p.a. for 6 months.

What will be the effect of this transaction while preparing accounting equation?
A. Decrease Motor vehicle by ₹10,000 and decrease cash by ₹10,000.
B. Increase Motor vehicle by ₹5,000 and increase capital by ₹5,000.
C. Increase Motor vehicle by ₹5,000 and increase capital by ₹5,000.
D. Decrease Motor vehicle by ₹5,000 and decrease capital by ₹5,000
2. Payment of rent by cheque will have which of the following impact on accounting
equation?
A. Increase bank and decrease capital B. Decrease cash and decrease capital
C. Increase bank and increase capital D. Decrease bank and decrease capital

3. . Show the accounting equation on the basis of the following transactions; (6M)
(a) Prakash commenced business with cash Rs. 1,00,000, Machinery Rs. 50,000 and
Creditors Rs. 20,000
(b) Wages paid Rs. 4,000 and due Rs. 1,000.
(c) Goods purchased for cash Rs. 10,000 and credit Rs. 15,000.
(d) Computer purchased from Star Computers worth Rs. 30,000
(e) Deposited Rs. 9,000 into the bank.
(f) Sold goods to Hari (costing Rs. 6,000) for Rs.7,000
(g) Received cash from Hari Rs. 6,500 in full settlement.
(h) Allowed interest on capital @ 10% p.a.
(i) Commission received in advance Rs. 4,000 by cheque.

4. From the following business transactions of a business firm for the month of July 2020,
prepare Accounting Equation: (6M)
July 01: Balance of Cash ₹ 1,20,000; Goods ₹45,000; Debtors ₹24,000; Capital ₹ 1,79,000
and creditors ₹10,000.
July 05: Goods sold (costing ₹15,000) on credit to Dinesh at 20% profits on cost.
July 12: Outstanding salary ₹9,000.
July 17: Commission received in advance ₹12,000.
July 26: Goods purchased for cash ₹25,000.
July 31: Goods given as charity ₹1,000.
5. .. (6M)