CBSE Class 11 Accountancy Accounting Equation Worksheet

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment MCQs

Question. Identify Asset in the following:-
(a) Building
(b) Rent Paid
(c) Sales
(d) Capital
Answer. A

Question. Identify expense in the following:-
(a) Building
(b) Rent Paid
(c) Sales
(d) Capital
Answer. B

Question. Purchase of furniture for cash is:-
(a) Increase in furniture and increase in cash
(b) Decrease in furniture and decrease in cash
(c) Increase in cash and decrease in furniture
(d) Increase in furniture and decrease in cash
Answer. D

Question. Purchase of Goods for cash is:-
(a) Increase in stock and increase in cash
(b) Decrease in stock and decrease in cash
(c)Increase in cash and decrease in stock
(d) Increase in stock and decrease in cash
Answer. D

Question. Capital increased when:-
(a) Goods Purchased
(b) Rent paid
(c) Commission received
(d) Goods loss by fire
Answer. C

Question. Capital decreased when:-
(a) Goods sold at a loss
(b) Rent received
(c) Goods purchased
(d) Machinery purchased
Answer. A

Question. Goods with drawn for personal use :-
(a) Increase in stock and increase in capital
(b) Decrease in stock and decrease in capital
(b) Increase in stock and increase in cash
(d) Increase in stock and decrease in cash
Answer. B

Question. Cash received from debtor is-
(a) Increase in stock and increase in capital
(b) Decrease in stock and decrease in capital
(c) Decrease in debtor and increase in cash
(d) Increase in stock and decrease in cash
Answer. C

Question. Cash paid to creditor-
(a) Increase in cash and increase in creditor
(b) Decrease in cash and decrease in creditor
(c) Increase in cash and increase in capital
(d) Increase in capital and decrease in cash
Answer. B

Question. Charged Depreciation on building is-
(a) Increase in building and increase in capital
(b) Decrease in building and decrease in capital
(c) Increase in building and increase in cash
(d) Increase in building and decrease in cash
Answer. B

Question. Rent received is-
(a) Increase in cash and increase in capital
(b) Increase in cash and decrease in capital
(c) Increase in capital and decrease in cash
(d) Increase in liability and increase in cash
Answer. A

Question. Further capital introduced is-
(a) Increase in cash and increase in capital
(b) Decrease in cash and decrease in capital
(c) Increase in income and increase in cash
(d) Increase in assets and decrease in income
Answer. A

Question. Goods purchased on credit-
(a) Increase in cash and increase in stock
(b) Decrease in cash and decrease in stock
(c) Increase in creditor and increase in stock
(d) Increase in stock and decrease in creditor
Answer. C

Question. Goods costing of Rs 90,000sold at a profit of 1/3 of cost, half of the payment received in cash treatment in accounting equation will be:-
(a) Increase in cash by Rs 60,000and decrease in stock by Rs 90,000 and increase in debtor by Rs 60,000 increase in capital by Rs 30,000
(b) Increase in cash by Rs 90,000and decrease in stock by Rs 45,000 and increase in debtor by Rs 90,000
(c) Increase in cash by Rs 45,000and decrease in stock by Rs 60,000 and increase in debtor by Rs 1,20,000
(d) Increase in cash by Rs 1,20,000 and decrease in stock by Rs 90,000 and increase in debtor by Rs 60,000
Answer. A

Question. Goods costing of Rs 2,00,000 sold at a profit of 1/4 of cost and cash discount allowed to customer 2%. Half of the payment received in cash:-
(a) Increase in cash by Rs 1,22,500 and decrease in stock by 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 47,500.
(b) Increase in cash by Rs 1,25,500 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 50,000.
(c) Increase in cash by Rs 1,25,000 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 45,000.
(d) Increase in cash by Rs 1,20,000 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 47,500.
Answer. A

Question. Car purchased of Rs 5,00,000 on 1stoct, 2019 and depreciation charged on car @10% p.a. by Straight line method for the year ended 31st March,2020 ,this transaction will be shown in accounting equation by-
(a) Increase in car by Rs 4,75,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 25,000
(b) Increase in car by Rs 5,00,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 50,000
(c) Increase in car by Rs 4,75,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 15,000
(d) Increase in car by Rs 4,75,000 and decrease in cash by Rs 4,75,000 and decrease in capital by Rs 25,000
Answer. A

Question. Gautam 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 the:-
(a) Credit of discount A/c Rs 8,250
(b) Credit of bad debts A/c Rs 7,250
(c) Debit of bad debts A/c by Rs 6,250
(d) Credit the debtor A/c by Rs 4,250
Answer. C

Question. Owner’s capital in the beginning is 1,20,000,creditor at the end Rs 1,00,000 ; Revenue during the period Rs 1,40,000 and expenses during the period are Rs 1,30,000.Owner’s capital at the end Rs:-
(a) Rs 1,30,000
(b)Rs 2,70,000
(c) Rs 2,40,000
(d) Rs 1,80,000
Answer. A

Question. Goods used in making the furniture (Sales price 5000 and profit 25% on cost) the cost of goods used is Rs:-
(a) Rs 3750
(b) Rs 4250
(c) Rs4000
(d) Rs 6250
Answer. C

Question. Goods sold costing Rs 18000 at a Profit of 25% on sales. The profit is Rs:-.
(a) 6000
(b) 4500
(c) 5000
(d) 5500
Answer. A

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

Question. Delhi University is --------- --------type of account.
Answer. Personal/ Representatives personal account

Question. Goods Costing Rs 8,000 sold at a profit of 20% on cost, then profit will be added in ---------account in accounting equation.
Answer. Capital

Question. If Ram started a business with capital of Rs 50,000 on 1st April, 2018 and his capital of Rs 80,000 on 31st March, 2019 then interest on capital @ 10% will be Rs ----------.
Answer. 5,000

Question. Salary paid of Rs 20,000 from saving bank Account, ------------account will be debited and -----------account will be credited.
Answer. Salary and Capital

Question. Cash received from Debtors 19,800 against full settlement of Rs 20,000, then 200 will be debited to----------account.
Answer. Discount allowed

Question. If capital is Rs 1,00,000 and outside liability Rs 2,50,000 then total assets Rs ----------.
Answer. Rs 3,50,000

Question. If total assets is Rs 1,30,000 and liabilities are Rs 50,000 then Net worth--------------.
Answer. Rs 80,000

Question. Bought goods for cash Rs 20,000 from Ram and also purchased of Rs 40,000 on credit then stock of Rs ------------------will be increase.
Answer. Rs 60,000

Question. If Pooja returned goods of Rs 2,000 to us, then -------------- account will be ----------- as per modern approach.
Answer. Sales return, debited

Question. If two machinery is purchased for Rs 20,000 and 10,000 respectively, first one is purchased for resale purpose and another one is for production purpose then machinery of Rs ---------- will be debited in Machinery Account.
Answer. Rs 10,000

Question. Goods costing Rs 1,80,000 sold at a loss of 10% on cost, then sales account will be credited of Rs ----------------.
Answer. Rs 1,62,000

Question. Wages of Rs 20,000 and goods of Rs 3,000 is used to for installation of machinery, ---------- Account will be debited by Rs ----------.
Answer. Machinery A/c, Rs 23,000

Question. Repayment of Bank loan of Rs 2, 00,000 with interest of Rs 20,000 by issue of cheque from current account, capital will be decrease by Rs -------------.
Answer. Rs 20,000

Question. Cycle purchased by proprietor for his daughter of Rs 9,000 out of business cash, then -----------will be debited.
Answer. Rs 9,000

Question. Paid life insurance premium of proprietor of Rs 12,000, then ------------ will be debited.
Answer. Drawings

Question. Pulkit commenced business on 1st April, 2018 with capital of Rs 5,00,000. On 31st March, 2019, his assets were worth Rs 8,80,000 and liabilities of Rs 70,000. Closing capital------------- and current year profit--------------- will be.
Answer. Capital-8, 10,000 and Profit-3, 10,000

Question. Purchased goods of Rs 40,000; trade discount 15% and 5% cash discount on purchase price, IGST 12% and Payment made by cheque, bank will be credited by Rs ------------.
Answer. 36,380

Question. Rent Paid Rs 6,000 of a business which is equally used by owner and business from Personal cash. Then Capital will be credited by Rs ------------------.
Answer. 3,000

Question. Goods sold which is purchased of Rs 40,000 at a profit of 25% on cost at 10% trade discount and 2% cash discount. Half payment is made through cheque and half will be on credit. Then discount account will debited by Rs ------------------- and Bank will be debited by Rs-------------- .
Answer. Discount -450; Bank Rs 22050

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment True and False 

1. Decrease in liabilities due to payment to creditors. True
2. Increase in capital due to payment of Rent. False
3. Purchase Account debited For Purchase of Machinery False
4. Decrease in stock due to goods distributed as free sample True
5. Cost of goods deduct from stock at the time of goods sold True
6. Sales Price of goods deduct from stock at the time of goods sold False
7. Income tax paid treated as Drawings. True
8. Wages paid for installation Of Machinery is not cost of Machinery. False
9. Sales Account Debited for Goods given away as charity. False
10. Outstanding Expenses are Representative Personal Account. True
11. Nominal Account includes all Tangible Asset. False
12. Salary Account is a Nominal Account whereas salary outstanding is a personal Account. True
13. Rent received is a Nominal Account whereas Unearned Rent is a personal Account. True
14. Capital in the beginning is Rs 1,40,000, Creditor at the end Rs 1,00,000 ;Revenue during the period Rs 1,00,000 and expenses during the period are Rs 80000.Owner’s capital at the end Rs 4,20,000. False
15. Goods used in making the Furniture sales price 60000 and profit 20% on cost the cost of goods used is Rs 5, 00, 00. True
16. Goods sold costing Rs 60,000 at a Profit of 25% on sales. The profit is Rs 20,000.  True
17. Sold goods costing Rs 12,000 at a profit of 20% on sales the effect on accounting equation will be Increase in cash Rs 14,400 increase in stock Rs 12,000 and increase in capital Rs 24,00. False

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- Representatives personal accoun     A- Rent receivable
2- Artificial personal account                 B- Mohan Account
                                                              C- Delhi university
                                                              D- Interest Payable
Answer. 9- 1-B,2-C, 3-A

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                          List –II
1-Personal A/c            A- Goodwill
2- Real Account          B-Salary
3- Nominal A/c           C- Ram
Answer. 10- 1-C, 2- A, 3-B

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                        List –II
1- Loss by fire            A- Loss
2- Rent received        B- Liability
                                  C- Income
Answer. 11- 1- A, 2- C

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                   List-II
1- Debit the receiver           A- Nominal
2- Debit what comes in      B- Personal
                                          C- Real
Answer. 12- 1- B, 2- C

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                 List –II
1- Credit the giver             A- Nominal
2- Credit what goes out    B- Personal
                                         C- Real
Answer. 13- 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- Increase in Capital, decrease in Capital       A- Salary paid
2- Decrease in cash, decrease in Capital         B- Goods sold
3- Increase in cash, deceases in stock            C- Interest on Capital
Answer. 25- 1-C, 2-A, 3-B

Q1) What is accounting equation? Explain its importance.

Q2) Show the accounting equation on the basis of the following transactions:

   a) Shri Ganesh commenced business with cash Rs.35,000, goods Rs.8,000 and furniture Rs.7,000.

   b) Bought furniture from M/s Mohan Furnitures on credit for Rs.3,000.

   c) Purchased goods from Sohan for cash Rs.35,000.

   d) Sold goods to Shyam for cash Rs.40,000(costing Rs.30,000).

   e) Bought goods from Ramesh Rs.30,000.

  f) Sold goods to Shyam costing Rs.30,000 for Rs.50,000.

  g) Received Rs.49,500 from Shyam in full settlement.

  h) Paid Rs.29,700 to Ramesh in full settlement.

  i) Paid half the amount owed to M/s Mohan.

  j) Withdrew Rs.1,000 for personal use.

  k) Withdrew goods for personal use(cost Rs.500, sale price Rs.600).

  l) Purchased household goods for Rs.15,000 giving Rs.5,000 in cash and the balance through a loan.

  m) Paid cash Rs.500 for loan and Rs.300 for interest.

  n) Goods destroyed by fire (cost Rs.500, sale price Rs.600)

  o) Paid salary Rs.500 and salary outstanding Rs.100.

  p) Paid rent in advance Rs.2,000.

  q) Accrued interest Rs 500.

  r) Commission received in advance Rs 1,000.

  s) Charged depreciation of Rs 400 on furniture.

Q3) Give an example for each of the following types of transactions:

   a) Increase in one asset, decrease in another asset.

   b) Increase in asset, increase in liability.

   c) Increase in asset, increase in owner’s capital.

   d) Decrease in asset, decrease in liability.

   e) Decrease in asset, decrease in owner’s capital.

   f) Increase in one liability, decrease in another liability.

   g) Increase in liability, decrease in owner’s capital.

   h) Decrease in liability, increase in owner’s capital.

Question. A trader purchased furniture for the business for Rs 20,000 and also paid Rs 800 as carriage. The accounting voucher to be prepared to record this transaction will be
a) Credit Voucher of Rs. 20,800
b) Credit Voucher of Rs 20,000
c) Debit Voucher of Rs 20,000
d) Debit Voucher of Rs 20,800.
Answer. D

Question. A trader deposited Rs 40,000 in Bank. The accountant needs to prepare a source document which will act as an evidence of this transaction.
a) Pay in slip
b) Cheque
c) Debit Note
d) Credit Note
Answer. A

Question. A debtor of Rs 8,000 was declared insolvent and only 40% amount could be realised from his estate as final dividend. To record this transaction , the following vouchers would be prepared
a) Credit and debit voucher
b) Credit Voucher and Transfer voucher
c) Transfer Voucher and Debit Voucher
d) None of the above
Answer. C

Question. A trader asked his accountant to withdraw Rs 12,000 from Bank for Business use. The accountant prepared a document and asked the trader to sign it. The document prepared will be
a) Pay in slip
b) Cheque
c) Invoice
d) Cash Memo
Answer. B

Question. A trader asked his accountant to withdraw Rs 12,000 from Bank for personal use. Name the voucher that the accountant will prepare is
a) Debit Voucher
b) Cheque
c) Credit Voucher
d) None of the above
Answer. A

Question. A trader sold goods of list price Rs 1,00,000 @ 10% trade discount to Y and Company. He also paid Rs 2,000 as carriage to be charged from Y and Company. The vouchers that will be prepared are
a) Debit Voucher Rs 2,000 and Transfer voucher Rs 90,000
b) Credit Voucher Rs 1,00,000 and Transfer Voucher Rs 2.000
c) Debit voucher Rs 2,000 and Transfer voucher Rs.1,00,000
d) None of the above.
Answer. A

Question. When Insurance Claim of Rs 1,00,000 is accepted by Insurance company on loss of goods by fire costing Rs 1,50,000 a month ago, one of the following voucher is prepared
a) Credit Voucher Rs 1,00,000
b) Credit voucher Rs 1,50,000
c) Transfer Voucher Rs. 1,00,000
d) Transfer Voucher Rs 1,50,000
Answer. C

Question. Source document prepared on charging Depreciation on Machinery Rs 2,800 will be:
a) Debit note
b) Credit note
c) Invoice
d) None of the above.
Answer. D

Question. Accounting voucher must contain the following elements:
a) It is written on a good quality paper.
b) Date of the transaction.
c) The number of the voucher is to be in a serial order.
d) All of the above.
Answer. D

CBSE Class 11 Accountancy Chapter 3 Source Documents Fill in The Blanks

Question. Raghav , a proprietor purchased Computer for business in Cash. The accounting vouchers prepared for recording will be ____________.
Answer. Debit voucher

Question. While depositing Cash in Bank, ________ becomes the source document for preparation of Voucher.
Answer. Pay in Slip

Question. The__________ voucher is prepared to record interest on Capital.
Answer. Transfer Voucher

Question. To record dishonour of cheque __________ voucher is prepared.
Answer. Transfer Voucher

Question. The accounting voucher prepared to record depreciation on Machinery is ____________.
Answer. Transfer Voucher

Question. The source document which becomes an evidence that Cash has been paid to a supplier, from whom goods were purchased on credit earlier, on a specific date is called __________.
Answer. Receipt

Question. _________ contains full details of a purchase or sale transaction. (Source documents / Vouchers)
Answer. Source Documents

Question. An amount of Rs 500 was embezzled by an employee will be recorded on the basis of __________ voucher.
Answer. Debit Voucher

CBSE Class 11 Accountancy Chapter 3 Source Documents True And False

1. Raghav, a proprietor purchased Computer for business in Cash. The accounting vouchers prepared for recording will be Transfer Voucher. [False]
2. While depositing Cash in Bank, Pay in slip becomes the source document for preparation of Voucher. [True]
3. The Credit voucher is prepared to record interest on Capital. [False]
4. To record dishonour of cheque Transfer voucher is prepared. [True]
5. The accounting voucher prepared to record depreciation on Machinery is Credit Voucher. [False]
6. The source document which becomes an evidence that Cash has been paid to a supplier, from whom goods were purchased on credit earlier, on a specific date is called Cash Memo. [False]
7. Source Documents contains full details of a purchase or Sale transaction. [True]
8. An amount of Rs 500 was embezzled by an employee will be recorded on the basis of Debit voucher. [True]

CBSE Class 11 Accountancy Chapter 3 Source Documents Match The Following

Question. 
Transaction
Which voucher is prepared :
1. Sold goods vide Cash Memo No 111:                            a) Journal entries
2. Purchased goods for cash vide cash memo no 101.     b) Documentary evidence
                                                                                           c) Debit voucher
                                                                                           d) Credit voucher.
Answer. (1-c; 2-d)

Question. 
Transaction
Which voucher is prepared :
1. Purchased machinery Rs 2,50,000 from      a) Journal entries
From XLtd. Vide bill No.`1027.

2. withdrew cash Rs 2,00 for personal             b) Transfer voucher
use on 15 april .
                                                                         c) Debit voucher
                                                                         d) Credit voucher
Answer. (1-b; 2-c)

1Give one transaction for each of the following that will: 1. Increase an asset and Increase in liability 2. Decrease in asset and decrease in liability 3. Decrease an asset and decrease capital

2How will you deal with the following items in Accounting Equation: 1. Interest on Capital 2.Interest on Drawings 3.Accrued Income 4. Unearned Income ₹ 5.Prepaid Expenses 6.Outstanding Expenses

3Calculate total assets if Capital is Capital is ₹40,000, Creditors ₹30,000, Revenue earned during the period ₹75,000, Expenses incurred during the period ₹20,000.Value of Stock unsold ₹20,000.

4Peter has the following assets and liabilities as on 31st December 2014.Ascertain his capital: Cash ₹2,500; Bank ₹4750; Debtor ₹1,800; Creditor ₹2,200; Plant and Machinery ₹8,000; Building ₹20,000; Furniture ₹2,400; Bills receivable ₹5,650: Bills Payable ₹2,350.

5Prepare an Accounting Equation from the following:

1. Started business with Cash ₹50,000.

2. Paid Salary ₹5,000.

3. Rent Outstanding ₹1,000.

4. Accrued Interest ₹1,500

5. Interest on Capital ₹2, 500.

6.Bought goods for cash ₹30,000 and on Credit for ₹50,000.

7. Goods costing ₹10,000 sold at a profit of 25%, out of which ₹7,000 received in cash.

8.Purchased a Television for personal use ₹2,500.

6Prepare Accounting Equation from the following:

1.Nitin started business with cash ₹75,000; goods ₹30,000; Machinery ₹50,000 and Furniture ₹25,000.

2.1/3rd of the above goods sold at a profit of 10% on cost and half of the payment is received In cash.

3.Depreciation on Machinery provided at 10%.

4. Cash withdrawn for personal use ₹10,000.

5. Interest on drawing charged @ 5%.

6. Goods sold to Jacob for ₹5,000 and received a Bill Receivable for the same amount for three Months.

7 . Received ₹5,000 from Jacob against the Bill Receivable on its maturity.

7 Show the accounting equation on the basis of the following transactions & also show the Balance Sheet.

1. Started the business with Cash ₹80,000; Goods ₹30,000; Furniture ₹40,000.

2. Purchased goods on credit from Nidi, ₹15,000 and on cash from Meera ₹10,000.

3. Bought a refrigerator for personal use ₹5,000.

4. Goods costing ₹6,000 sold at the loss of 10% out of which ₹2,000 received in cash.

5. Received cash from debtor ₹3,200 in full settlement .

6. Sold goods for cash ₹5,000.

7. Introduced fresh capital ₹1,00,000.

8. Rent outstanding ₹5,000.

9. Accrued interest ₹10,000.

8 Prepare an Accounting Equation from the following:

1. Started the business with Cash ₹1,00,000; goods ₹50,000 and loan ₹15,000.

2. Goods costing ₹24,000 sold at a profit of 33 1/3 % and 3/4th payment received in Cash.

3. Paid three months rent in advance for office ₹6,000.

4. Goods withdrawn for personal use ₹10,000.

5. Interest on drawings at the rate of ₹55.

6. Goods given as charity ₹1,000.

7. Loss of Cash by theft ₹1,000.

8. Loan taken was repaid with interest ₹150.

9. Purchased Securities ₹10,000.

10. Sold Securities costing ₹3000 for ₹3,500.

9 Prepare an Accounting Equation from the following information:

Jacob Started business with ₹15,00,000.

1. Opened a bank account in State Bank Of India with ₹4,80,000.

2. Bought Furniture for ₹60,000 and a cheque was issued on the same day.

3.Bought Plant and Machinery for business for ₹1,25,000 and advance of ₹10,000 in cash is paid to M/s Ramjee Lal.

4. Goods purchased from M/s Sunil Trade₹ for ₹55,000.

5. Goods costing ₹25,000 sold to Rajani Enterprises for ₹35,000.

6. Paid Salary ₹2,500 and Salary outstanding ₹1,000.

7. Depreciation on Plant and Machinery ₹1,200.

10 Prepare an Accounting Equation from the following information: 1-4-2011 Business started with Cash ₹1,50,000. 1-4-2011 Goods purchased from Manisha ₹36,000. 1-4-2011 Stationery purchased for cash ₹2,200. 2-4-2011 Opened a bank account with SBI for ₹32,000. 3-4-2011 Goods sold to Priya for ₹16,000. 5-4-2011 Purchased goods from Namita for ₹20,000. 10-4-2011 Insurance paid by cheque ₹2,250. 11-4-2011 Cash withdrawn for household purpose ₹5,000. 13-4-2011 Interest received ₹250 in cash. 14-4-2011 Rent paid in advance ₹550.

11 Calculate the capital as on 1-1-2012 in each of the following cases

1. On 31-12-2012 the total assets and external liabilities were ₹30,000 and ₹900 respectively. During the year the proprietor earned ₹3,000.

2.If in the preceding case the proprietor had introduced additional capital ₹3,000 and had withdrawn ₹1,800 for personal use.

12 Calculate total equity and owner equity if:

1. Owner’s equity in the beginning ₹36,000.

2. Equity of Creditor at the end ₹30,000.

3. Revenue during the period is ₹42,000.

4. Expenses during the same period are ₹39,000.

13 Show the effect of the following transactions on Accounting Equation and also prepare a Balance Sheet. 1. Started business with cash amounting to ₹35,000 and goods ₹15,000.