Q. No.

1
Mr A had the following transactions. Use Accounting equation to show their effect on his Assets, Liabilities and Owners'

1 Started business with cash Rs 5,000

2 Purchased goods on credit Rs 400
3 Purchased goods for cash Rs 100
4 Purchased furniture Rs 50
5 Withdrew for personal use Rs 70
6 Paid rent Rs 20
7 Received interest Rs 10
8 Sold goods costing Rs 50 on credit for Rs 70
9 Paid to creditors Rs 40
10 Paid for salaries Rs 20
11 Further Capital invested Rs 1,000
12 Borrowed from Mr B Rs 1,000
Liabilities and Owners' equity
A. No. 1

Assets Liabilities Owner's Equity

Cash Stock Furniture Debtors Creditors Loan
1 5,000 5,000
2 400 400
3 -100 100
4 -50 50
5 -70 -70
6 -20 -20
7 10 10
8 -50 70 20
9 -40 -40
10 -20 -20
11 1,000 1,000
12 1,000 1,000

6,710 450 50 70 360 1,000 5,920

Total 7,280 1,360 5,920

Q. No. 2
During the month of July, a travel company recorded the following transactions.

1 Owner invested Rs 25,000 to start the business.

2 He paid Rs 500 as rent for the month
3 Purchased a machinery worth Rs 8,000 for credit.
4 Puchased office supplies worth Rs 500
5 Paid for advertising Rs 750
6 Paid salaries Rs 3,000
7 Earned fees Rs 10,000 out of which Rs 2,000 got in cash immediately.
8 Paid Rs 5,000 to the machinery supplier.
9 Used Rs 100 worth supplies.
10 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

Assets Liabilities Owner's Equity

Cash Machinery Off. Supplies Debtors Creditors C. C. Loan
1 25,000 25,000
2 -500 -500
3 8,000 8,000
4 -500 500
5 -750 -750
6 -3,000 -3,000
7 2,000 8,000 10,000
8 -5,000 -5,000
9 -100 -100
10 1,000 -1,000

17,250 8,000 400 8,000 3,000 1,000 29,650

Total 33,650 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 : Assets Liabilities

Buildings 66,700 Loan Pay 34,000
Revenue from Services 103,000 Equipment 25,000 Exp Pay 6,600
Supplies 2,300
Expenses: Tr Receiv 17,800
Cash 25,000
Rent Expenses 11,200
Electricity Expenses 42,000
Salaries Expenses 16,600
Delivery Expenses 2,500 72,300

Profit 30,700 Total 136,800 40,600

Net Profit Rs 30,700 Assets Liabilities

136,800 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 Mr R brought in Rs 50,000 worth computer to the business

b Provided services for cash Rs 23,000
c Bought office machinery on credit for Rs 25,000
d Billed clients for services Rs 16,000
e Paid rent deposit for office Rs 10,000
f Collected money from clients billed in (d) above Rs 12,300
g Withdrew for personal use Rs 9,000
h Paid for electricity Rs 1,700
i 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

Assets Liabilities Owner's Equity

Cash Computer Machinery Rent Deposit Debtors Creditors
a 50,000 50,000
b 23,000 23,000
c 25,000 25,000
d 16,000 16,000
e -10,000 10,000
f 12,300 -12,300
g -9,000 -9,000
h -1,700 -1,700
i -2,000 -2,000

12,600 50,000 25,000 10,000 3,700 25,000 76,300

Total 101,300 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 Mr S invested Rs 50,000
b Purchased equipment on credit Rs 40,000
c Took loan from bank Rs 30,000
d Gave bill to customers for services provided Rs 15,000
e Provided services for cash Rs 18,000
f Purchased supplies for cash Rs 3,000
g Paid salary to employees Rs 10,000
h Paid electricity charges Rs 6,000
i Purchased equipment for cash Rs 5,000
j Paid part of the bank loan taken earlier Rs 10,000
k Paid Dividends Rs 5,000

Use Accounting equation to show their effect on his Assets, Liabilities and Owners' equity
A. No. 5

Assets Liabilities Owner's Equity

Cash Equipment Supplies Debtors Creditors Bank Loan
a 50,000 50,000
b 40,000 40,000
c 30,000 30,000
d 15,000 15,000
e 18,000 18,000
f -3,000 3,000
g -10,000 -10,000
h -6,000 -6,000
i -5,000 5,000
J -10,000 -10,000
k -5,000 -5,000
59,000 45,000 3,000 15,000 40,000 20,000 62,000
Total 122,000 60,000 62,000
Q. No. 6

Mr P set up a Interior Decoration business on Jan, 1, 20XX. His transactions for the month are

a He invested Rs 50,000 as capital

b Took a bank loan Rs 25,000
c Billed customers for services Rs 14,000
d Paid salaries for assistants Rs 5,000
e Bought furniture for cash Rs 20,000
f Bought office supplies on credit Rs 3,000
g Received cash for services provided Rs 38,000
h Paid fuel expenses Rs 8,000
i Paid office rent Rs 4,000
j Paid for Office supplies purchased earlier Rs 3,000
k Received cash from customers billed Rs 11,000

Analyse the effect of the transactions on the Accounting Equation

A. No. 6

Assets Liabilities Owner's Equity

Cash Furniture Supplies Debtors Creditors Bank Loan
a 50,000 50,000
b 25,000 25,000
c 14,000 14,000
d -5,000 -5,000
e -20,000 20,000
f 3,000 3,000
g 38,000 38,000
h -8,000 -8,000
i -4,000 -4,000
J -3,000 -3,000
k 11,000 -11,000
84,000 20,000 3,000 3,000 - 25,000 85,000
Total 110,000 25,000 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
Assets Liabilities Owner's Equity
Cash Acc Rec Off Supp Equipment Acc Pay Bank Loan Capital
Op Bal 23,000 15,000 6,000 20,000 24,000 40,000
a 15,000 15,000
b 25,000 25,000
c -4,000 -4,000
d 35,000 35,000
e 38,000 -38,000
f 10,000 10,000
g -7,500 7,500
h -12,000 -12,000
i -7,000 -7,000
J -13,000 -13,000
k -8,000 -8,000
44,500 12,000 13,500 35,000 26,000 2,000 77,000
Total 105,000 28,000 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
Assets Liabilities Owner's Equity
Cash Trade Rec Equipment Films Trade Pay Bank Loan Capital RE
Op Bal 5,000 10,000 11,700 36,000 7,000 25,000 30,700
a 4,000 -4,000
b -7,000 -7,000
c 10,000 10,000
d -600 -600
e -5,000 5,000
f 20,000 20,000
g 15,000 15,000
h -2,000 -2,000
i -3,000 -3,000
J 3,500 3,500
k -2,500 -2,500
13,900 9,500 31,700 41,000 17,000 10,000 25,000 44,100
Total 96,100 27,000 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.

Assets = Liabilities Equity

Cash Acc Rec Supplies Equipment Acc Pay Capital
Balance 20,000 15,000 9,000 32,000 26,000 50,000
(a) +2000 -2,000
Balance 22,000 13,000 9,000 32,000 26,000 50,000
(b) -4,000 +4,000
Balance 18,000 13,000 13,000 32,000 26,000 50,000
(c) +6,500 +6,500
Balance 18,000 19,500 13,000 32,000 26,000 56,500
(d) -1,000 -1,000
Balance 17,000 19,500 13,000 32,000 25,000 56,500
(e) +5,000 +5,000
Balance 17,000 19,500 13,000 37,000 25,000 61,500
(f) +8,000 +8,000
Balance 17,000 19,500 13,000 45,000 33,000 61,500
A. No. 9

a Collected amounts due from past invoices

b Purchased supplies for cash
c Billed customers for services
d Paid suppliers
e Owner invested in the form of equipment
f 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.

Assets = Liabilities Equity

Cash Acc Rec Supplies Equipment Acc Pay Capital
Balance 20,000 52,000 6,800 50,000 43,000 85,800
(a) -3,000 -3,000
Balance 17,000 52,000 6,800 50,000 43,000 82,800
(b) +5,000 +5,000
Balance 17,000 52,000 6,800 55,000 48,000 82,800
(c) +24,000 -24,000
Balance 41,000 28,000 6,800 55,000 48,000 82,800
(d) +10,000 +10,000
Balance 51,000 28,000 6,800 55,000 48,000 92,800
(e) -4,000 +4,000
Balance 47,000 28,000 10,800 55,000 48,000 92,800
(f) -18,000 -18,000
Balance 29,000 28,000 10,800 55,000 30,000 92,800
A. No. 10

a Paid Expenses Rs 3,000

b Purchased office equipment on credit Rs 5,000
c Collected amounts due for past invoices Rs 24,000
d Provided services for cash Rs 10,000
e Purchased office supplies for cash Rs 4,000
f Paid creditors Rs 18,000