CBSE Class 11 Accountancy Equation Enrichment Worksheet

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment MCQs

Question. Basic accounting equation is-
(a) Assets= Capital+liabilities
(b) Liabilities= Assets+Capital
(c) Capital=liabilities +assets
(d) Asset=liabilities-capital
Answer. A

Question. Bank Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. C   

Question. Capital Account is -
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. C

Question. Outstanding expenses account is a-
(a) Real A/c
(b) Tangible A/c
(c) Nominal A/c
(d) Representative Personal A/c
Answer. D

Question. Rent paid is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. B

Question. Drawing Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. C

Question. Ram a debtor is-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. C

Question. Rahul a Creditor is-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. C

Question. Rent received is -
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer. B

Question. Purchase Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c
Answer. B

Question. Income Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c
Answer. B

Question. Assets Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c
Answer. A

Question. The capital of a business is Rs 2,00,000 and liabilities are Rs 40,000 .The asset of business is:-

(a) Rs 2,40,000
(b) Rs 1,60,000
(c) Rs 2,80,000
(d) Rs 2,10,000
Answer. A

Question. Sold goods costing Rs 75,000 at a profit of 33-1/3 % in cash :-
(a) Increase in cash by Rs 1,00,000 and decrease in stock by Rs 75,000 and increase in capital by Rs 25,000
(b) Increase in cash by Rs 75,000 and decrease in stock by Rs 75,000
(c) Increase in cash by Rs 1,00,000 and increase in stock by Rs 1,00,000
(d) Increase in stock by Rs 75,000 and decrease in cash by Rs 1,00,000
Answer. A

Question. 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, closing capital is-
(a) Rs 1,20,000
(b) Rs 1,70,000
(c) Rs 1,40,000
(d) Rs 1,50,000
Answer. A

Question. Sold goods for cash costing 20000 and on credit Rs 30000 at a profit of 25%. Profit is -
(a) Rs 2500
(b) Rs 3750
(c) Rs 12500
(d) Rs 6250
Answer. C

Question. Sold goods for cash costing 20,000 and on credit Rs 30,000 at a loss of 10%. Sales price will be-
(a) 45000
(b)55000
(c) 60000
(d) Rs 40,000
Answer. A

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

Question. Assets= Capital+--------------.
Answer. Liability

Question. Accounting equations is prepared as per ---------------concept.
Answer. Dual aspect Concept

Question. Bank account is a type of ------------- as per traditional approach
Answer. Personal account

Question. If cash is received Rs 2,00,000 from Akshat, Akshat account will be---------.
Answer. Debit

Question. Account is having --------------shape.
Answer. T-shape

Question. Withdrawal of Money from bank for personal use ----------- account will be debited, ---------- account will be credited.
Answer. Debit-Drawing, Credit- Bank

Question. Increase in assets will be --------------and decrease in assets will be -----------, if modern approach is followed.
Answer. Debited, Credited

Question. Increase in expenses will be --------------and decrease in expenses will be -----------, if modern approach is followed.
Debited, Credited Increase in income will be --------------if modern approach is followed.
Answer. Credited

Question. Increase in liability will be --------------and decrease in liability will be -----------, if modern approach is followed.
Credited, Debited Increase in capital will be --------------, if modern approach is followed.
Answer. Credited

Question. Salary due to clerk Rs 20,000 will be credited in ----------------- Account.
Answer. Outstanding salary 

Question. Furniture purchased on credit Rs 20, 000, ----------- account will be debited.
Answer. Furniture

Question. Discount allowed is a ----------- type of account as per traditional approach.
Answer. Nominal

Question. Horses purchased for business purpose will be debited to --------- account.
Answer. Livestock

Question. If Ram started business with cash Rs 50,000, Machinery of Rs 20,000 and Loan from friend of Rs 10,000 @6% p.a. interest, then capital of Ram will be----------- .
Answer. Capital Rs 70,000

Question. Rishi Commenced business on 1St April, 2018 with Rs 5, 00,000 and long term Loan of Rs 3, 00,000. On 31st March, 2019 his assets were worth Rs 12, 00,000 and then current year Profit will be-----------------.
Answer. Rs 4, 00,000

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

Question. Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash and half of remaining received a Post-dated cheque then Debtors of Rs -------------will be increased in accounting equation
Answer. Rs 8,000

Question. Goods costing Rs 40,000 sold at a loss of 25% on cost, 12,000 received in cash then debtors will increased by Rs--------------.
Answer. 18,000

CBSE Class 11 Accountancy Chapter 3 Equation Enrichment True and False 

1. Machinery is a Real Account. True
2. Patent is a Nominal Account. False
3. Bank overdraft is Asset of a Business. False
4. All Assets are debited. True
5. All liabilities are debited. False
6. Drawing is a Nominal Account. False
7. Capital is a Personal Account. True
8. Creditor is a Personal Account. True
9. Debtor is a Nominal Account. False
10. Outstanding expenses are personal Account. True
11. Rent paid is a Nominal Account. True
12. Interest Received is a Personal Account. False
13. Cash is a Real Account. True
14. Sold goods for cash costing Rs 20,000 and on credit costing Rs 30,000 at a profit of 25% on Sales price. Then Sales price is Rs 62,500. False

15. Sold goods for cash costing Rs 20,000 and on credit Rs 30,000 at a loss of 10%. Sales price is Rs. 45,000. True
16. 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:-
Increase in cash by Rs 60,000 and decrease in stock by Rs 90,000 and increase in debtor by Rs. 60,000 increase in capital by Rs 30,000. True
17. 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 Increase in cash by Rs 1,22,500 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 125000 and increase in capital by Rs 47,500. 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- All expenses/losses are debit and                       A- Real Account
incomes and profit are credit
2- Debit what comes in, credit what goes out          B- Personal account
                                                                                 C- Nominal account
Answer.- 1-C, 2-A

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                        List –II
1- Investment         A- Loss
2- Bad debts          B- Income
                              C- Assets
Answer. 2- 1-C, 2-A

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                List –II
1- Land and Building      A- Expenses
2- Salary                         B- Liability
                                       C- Assets
                                       D- Income
Answer. 3- 1-C, 2-A

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                     List –II
1- Electricity Charges          A- Liability
2- Capital                             B-Intangible Assets
3- Patent/Copyright             C- Expenses
4- Computer software          D- Tangible Assets
Answer. 4- 1-C, 2-A, 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- Increase in assets, decrease in another assets               A- Creditors paid in cash
2- Increase in one liability, decrease in another liability       B- Goods purchased on credit
3- Decrease in assets, Decrease in liability
                                                                                             C- Loan converted into capital
                                                                                             D- Cash Received from Debtors
Answer. 20- 1-D; 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- Net worth        A- External Liability
2- Loan               B- Internal Liability
Answer. 21- 1-B, 2-A

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 on sale of goods of Rs 4,000        A- Decrease in stock
2- Salary due to clerk of Rs 10,000           B- Increase in Capital
                                                                  C- Increase in liability
Answer. 22- 1-B, 2-C

1. Prepare Accounting Equation from the following:

1. Angel started business with cash ₹7500; Stock ₹3000; Machinery ₹5000 and Furniture ₹2500.

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 ₹1000.

5. Interest on drawing charged @ 5%.

6. Goods sold to Jacob for ₹500 and received a Bill Receivable for the same amount for three Months.

7. Received ₹500 from Jacob against the Bill Receivable on its maturity.

2. Mr. Prakash started a business with a cash investment of ₹42,00,000.The following business transactions have been recorded:

1. Paid three months advance rent for office accommodation ₹5100.

2. Bought Motor Vehicle for Official use ₹24,00,000.

3. Purchased furniture and fittings ₹8000.

4. Bought Laptop from Cyber Visions ₹50,000.

5. Sold furniture at cost to Vinay for ₹42,000.

6. Vinay paid ₹30000 in Cash and accepted a bill at three months for the balance.

7. Paid telephone bill ₹5000 and electricity bill of ₹9000.

8. Vinay paid the amount of the bill due on maturity.

9. Collected ₹7000 as Rent and Rent received in advance ₹5000.

10. Purchased goods for ₹10,000 at a trade discount of 10%.