CBSE Class 11 Accountancy Accounting Equation Assignment

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment MCQs

Question. Rent for the month of March not paid is-
(a) Increase in liabilities and increase in asset
(b) Decrease in cash and decrease in liabilities
(b) Increase in asset and increase in cash
(d) Increase in liabilities and decrease in capital
Answer. A

Question. Goods returned by customer is-
(a) Increase in cash and increase in stock-
(b) Decrease in cash and decrease in stock
(b) Increase in creditor and increase in stock
(d) Increase in stock and decrease in debtor
Answer. D

Question. Goods Given as charity (Sales price 500) of Rs 450-
(a) Increase in debtor by 500 and increase in stock by 500
(b) Decrease in cash by500and decrease in stock by 450
(c) Decrease in stock by500 and decrease in capital by 500
(d) Decrease in stock by450 and decrease in capital by 450
Answer. D

Question. Interest on capital provided is-
(a) Increase in capital and increase in cash
(b) Decrease in cash and decrease in capital
(c) Increase in capital and decrease in assets
(d) Increase in capital as well as decrease in capital
Answer. D

Question. Insurance premium of Rs 12,000 paid for one year on 1st August 2018, unexpired insurance premium is on 31st March,2019 will be-
(a)Rs 4,000
(b)Rs 5,000
(c) Rs 6,000
(d) Rs 7,000
Answer. A

Question. Goods returned to supplier costing Rs 1000 and selling Price Rs 1100-
(a) Increase in creditor by 1000 and increase in stock by 1000
(b) Decrease in cash by 1100 and decrease in stock by 1000
(c) Increase in creditor by 1100 and increase in stock by 1100
(d) Decrease in stock by 1000 and decrease in creditor by 1000
Answer. A

Question. Goods destroyed by fire costing Rs1500 selling price Rs 2000-
(a) Increase in stock by 2000 and increase in cash by 2000
(b) Decrease in stock by 1500and decrease in capital by 1500
(c) Increase in stock by 2000 and increase in stock by 2000
(d) Increase in stock by 1500 and decrease in creditor by 1500
Answer. B

Question. Rent received in advance of Rs 2000-
(a) Increase in cash B 2,000 and increase in rent by 2000
(b) Decrease in cash by 2,000 and decrease in rent 2000
(c) Increase in cash by 2000 and increase in liability by 2000
(d) Increase in cash by 2000 and decrease in creditor by 2000
Answer. C

Question. Interest on Drawings-
(a) Increase in cash and increase in income
(b) Increase in capital and decrease in cash
(b) Decrease in capital and increase in capital
(d) Increase in cash and increase in capital
Answer. C

Question. Repayment of loan by cheque is-
(a) Decrease in bank and decrease in liabilities
(b) Decrease in cash and decrease in liabilities
(c) Increase in asset and increase in creditor
(d) Increase in bank and decrease in liabilities
Answer. C

Question. Interest earn but not received -
(a) Increase in cash and increase in rent
(b) Decrease in cash and decrease in rent
(c) Increase in capital and increase in Asset
(d) Increase in cash and increase in debtor
Answer. C

Question. Goods distributed as free sample
(a) Increase in cash and increase in stock
(b) Decrease in stock and decrease in
(c) Decrease in stock and decrease in capital
(d) Increase in stock and decrease in creditor
Answer. C

Question. Sold goods costing Rs 12000 at a profit of 20% on sales the effect on accounting equation will be :-
(a) Increase in cash Rs 14400,increase in stock Rs 12000 and increase in capital Rs 2400
(b) Increase in cash Rs 15000,decrease in stock Rs 12000 and increase in capital Rs 3000
(c) Increase in cash Rs 12000,decrease in stock Rs 14400 and increase in capital Rs 2400
(d) Increase in cash Rs 14000,decrease in stock Rs 12000 and increase in capital Rs 2000
Answer. B

Question. A cheque of Rs 10000 received from Mukesh deposited into Bank, Returned dishonored the effect on Accounting Equation will be:-
(a) Decrease in Bank by Rs10,000,Increased in Debtor by Rs10,000
(b) Decrease in Bank by Rs 10,000,Increased in Creditor by Rs10,000
(c) Decrease in Bank by Rs10,000,Increased in Capital by Rs10,000
(d) Decrease in Bank by Rs 10,000,Increased in Drawing by Rs 10,000
Answer. C

Question. Building purchased For Rs 24,00,000 Paid Registration charges Rs 1,00,000 and Brokerage 2%,The Cost of building is Rs ;
(a) 25,00,000
(b) 25,50,000
(c) 24,00,000
(d) 25,48,000
Answer. A

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment Fill in The Blanks  

Question. In case of Sole proprietorship balance of capital account shown in ---------------- side of balance sheet.
Answer.  Liability

Question. Ram working as a cashier in Reliance industry for the financial year 2019-20 and amount of 10 months’ salary Rs 2,00,000 credited in his account then 2 months’ salary of Rs 40,000 is shown in Reliance Industry by the name of --------------.
Answer. Outstanding salary

Question. Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash. Capital of Rs -------------will be increased in accounting equation.
Answer. Rs 16,000

Question. Goods purchased from Krishna of Rs 20,000 and supplied to Radhika for Rs 26,000, out of which Radhika returned goods of Rs 7,800 due to not as per sample which returned to Krishna by Rs ------.
Answer. Rs 6,000

Question. Goods costing Rs 50,000 sold at a loss of 20% on cost, 12,000 received in cash then debtors will increased by Rs --------------.
Answer. Rs 18,000

Question. Goods costing Rs 6,000 Invoice Price Rs 4,800 Loss by fire, Purchases account will be credited by Rs -------------.
Answer. Rs 48, 00

Question. Bought goods for cash Rs 20,000 from Ram and also purchased of Rs 40,000 on credit from Ram, then Ram account will be credited by Rs ---------------.
Answer. Rs 40,000

Question. Insurance premium paid of Rs 36,000 on 1st July, 2018 for one year and account are closed 31st March every year, then amount of Rs ------------ will be debited in -------------Account.
Answer. 9,000, prepaid expenses

Question. Salary paid to Ghanshyam Rs 8,000 for 10 months and salary of Rs 1600 is outstanding for 2 months. Then salary account will be debited by Rs ----------------.
Answer. Rs 9,600

Question. Cash received Rs 36,000 from Vidhi, after deducting 10% cash discount then Vidhi account will be credited Rs ---------------.
Answer. Rs 40,000

Question. Received cash of Rs 20,000 from Ramesh on behalf of Ganesh. Then ------------ account will be credited.
Answer. Ganesh

Question. Life insurance premium of Rs 24,000 on 1stOctober, 2018 for one year and account are closed on 31st March, every year then drawings will be debited by Rs ---------.
Answer. Rs 24,000

Question. Purchased goods of Rs 50,000 at 10% trade discount levied 6% CGST, 6% SGST then purchase account will be debited by Rs ------------.
Answer. Rs 45,000

Question. Transactions of Radha A furniture dealer
Jan 1,2019        Purchased Furniture worth of Rs 60,000.
Jan 2,2019        Out of which goods of Rs 10,000 is used by business for office use
Purchase account will be debited by Rs ----------- on Jan 01, 2019.
Answer. Rs 60,000

Question. 100 shares of Rs 50 each purchased of Colgate limited and paid brokerage 1% on purchase price then -------- account will be debited by Rs -------------.
Answer. Investment/shares Account, Rs 5,050

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment True and False 

1. Rent for the month of March not paid is Increase in liabilities and decrease in capital. True
2. Goods returned by customer is Increase in cash and increase in stock. False
3. Goods Given as charity Sales price 1500 of Rs 1450 Increase in debtor by 500 and increase in stock by 500. False
4. Interest on capital is Increase in capital and decrease in capital. True
5. Rent paid Rs 30,000 paid for one year on 1st August 2018, Prepaid Rent on 31st March, 2019 will be 10,000. True
6. Goods returned by customer costing Rs 1,000 and selling Price Rs 11,00 Decrease in debtor by 1,000 and increase in stock by Rs 1,000. False
7. Goods Loss by theft costing Rs25,000 selling price Rs 30,000 decrease in stock by 25,000 and decrease in capital by Rs 30,000 . False
8. Commission received in advance of Rs 20,000 Increase in cash by 20,000 and increase in liability by 20,000. True
9. Interest on Drawings Increase in cash and increase in income. False
10. Repayment of loan Rs 10,000 by cheque is Decrease in bank and decrease in liabilities. True
11. Interest earns but not received for of Rs 1000 during the year ended will Increase in cash and increase in rent. False
12. Goods distributed as free sample Cost Price Rs 15,000 and sales price 20,000 will Increase in cash by Rs 20,000 and decrease in stock by 15,000. False
13. Sold goods costing Rs 75,000 at 33-1/3% Profit then the impact of this transactions as follows-
Increase in cash by 1, 00,000 and decrease in stock by Rs 75,000 and capital by Rs 25,000. True
14. X started business on 1st Jan, 2019 with a capital of Rs 1,00,000 and borrowed Rs 30,000 from his friend. He made a profit of Rs 30,000 during the year and withdrew cash 10,000 while calculating closing capital, borrowed money will considered. False
15. Building purchased of Rs 5,00,000 on 1stoct 2019 and depreciation charged on Building @10% p.a. by Straight line method for the year ended 31st March ,2020.This transaction will be shown in accounting equation will Increase in Building by Rs 5,00,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 25,000.False
16 MR. X who owed us Rs 25,000 is declared insolvent and 75 Paisa in a Rupee received from him .the Amount and Account would be entered to Debit of Cash A/c by 18,750.
True

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment Match The Following

Question. Match items in List I with terms in List II using the codes given below the lists- 
List –I                        List –II
1-Furniture                A- Credit balance
2- Capital                  B- Debit balance
3-Bank overdraft
4- Loss on sale of fixed assets
Answer. 5- 1& 4-A, 2& 3-B

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)         Option (List II)
1- Receiver                      A- Debit
2- What goes out             B- Credit
3- Income
4- Giver
Answer.-6-1-A, 2,3 &4- B

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)                   Option (List II)
1- Repayment of bank loan       A- Increase in bank balance
2-Loan taken from Bank           B- Decrease in stock
3- Goods loss by theft              C- Decrease in bank balance
4- Bad debts recovered            D- Increase in cash
Answer.-7- 1- C,2-A, 3-B, 4-D

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)              Option (List II)
1- Profit                            A- No change in capital
2- Loss                            B- Added in capital
                                       C- Subtract in capital
Answer. 8- 1-B,2-C

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)                                              Option (List II)
1- Purchase furniture of Rs 20,000 in cash          A- Decrease in cash and decrease in capital
2- Cash withdrew of Rs 10,000 by Proprietor       B- Increase in liability, decrease in liability
3- B/P accepted to creditor of Rs 10,000             C- Increase in assets, Decrease in assets
Answer. 23- 1-C, 2-A, 3-B

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)                                                           Option (List II)
1- Increase in one liability, decrease in another liability    A- Additional Capital
2- Increase in liability ,decrease in Capital                       B- Acceptance given
3- Increase in assets, Increase in Capital                        C- Outstanding salary
Answer. 24- 1-B, 2-C, 3-A