{"id":4155,"date":"2022-05-09T15:00:50","date_gmt":"2022-05-09T09:30:50","guid":{"rendered":"http:\/\/mcq-questions.com\/?p=4155"},"modified":"2022-05-06T15:59:48","modified_gmt":"2022-05-06T10:29:48","slug":"ts-grewal-accountancy-class-11-solutions-chapter-2","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/ts-grewal-accountancy-class-11-solutions-chapter-2\/","title":{"rendered":"TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation"},"content":{"rendered":"

TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation are part of TS Grewal Accountancy Class 11 Solutions<\/a>. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation.<\/p>\n\n\n\n\n\n\n\n\n\n\n
Board<\/strong><\/td>\nCBSE<\/td>\n<\/tr>\n
Textbook<\/strong><\/td>\nNCERT<\/td>\n<\/tr>\n
Class<\/strong><\/td>\nClass 11<\/td>\n<\/tr>\n
Subject<\/strong><\/td>\nAccountancy<\/td>\n<\/tr>\n
Chapter<\/strong><\/td>\nChapter 2<\/td>\n<\/tr>\n
Chapter Name<\/strong><\/td>\nAccounting Equation<\/td>\n<\/tr>\n
Number of Questions Solved<\/strong><\/td>\n29<\/td>\n<\/tr>\n
Category<\/strong><\/td>\nTS Grewal Solutions<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation<\/h2>\n

Question 1.
\nWhat will be effect of the following on the Accounting Equation?
\n(i) Started business with cash \u20b9 45,000
\n(ii) Opened a Bank Account with a deposit of \u20b9 4,500
\n(iii) Bought goods from M\/s. Sun & Co. for \u20b9 11,200
\nSolution:
\n\"TS<\/p>\n

Question 2.
\nShow the Accounting Equation for the following transactions:
\n\"TS
\nSolution:
\n\"TS<\/p>\n

 <\/p>\n

Question 3.
\nShow the effect of the following transactions on the Accounting Equation:
\n(i) Started business with cash \u20b9 50,000.
\n(ii) Salaries paid \u20b9 2,000.
\n(iii) Wages Outstanding \u20b9 200.
\n(iv) Interest due but not paid \u20b9 100.
\n(v) Rent paid in advance \u20b9 150.
\nSolution:
\n\"TS<\/p>\n

Question 4.
\nWhat will be the effect of the following on the Accounting Equation?
\n(i) Harish started business with cash \u20b9 18,000
\n(ii) Purchased goods for Cash \u20b9 5,000 and on credit \u20b9 2,000
\n(iii) Sold goods for cash \u20b9 4,000 (costing \u20b9 2,400)
\n(iv) Rent paid \u20b9 1,000 and Rent Outstanding \u20b9 200
\nSolution:
\n\"TS<\/p>\n

 <\/p>\n

Question 5.
\nPrepare Accounting Equation from the following:
\n(i) Started business with cash \u20b9 1,00,000 and Goods \u20b9 20,000.
\n(ii) Sold goods worth \u20b9 10,000 for cash \u20b9 12,000.
\n(iii) Purchased furniture on credit for \u20b9 30,000
\nSolution:
\n\"TS<\/p>\n

Question 6.
\nPrepare an Accounting Equation and Balance Sheet on the following basis:
\n(i) Ajeet started business \u20b9 20,000.
\n(ii) He purchased furniture for \u20b9 2,000.
\n(iii) He paid rent of \u20b9 200.
\n(iv) He purchase goods on credit \u20b9 3,000.
\n(v) He sold goods (cost price \u20b9 2,000) for \u20b9 5,000 on cash.
\nSolution:
\n\"TS<\/p>\n

 <\/p>\n

Question 7.
\nPrepare an Accounting Equation from the following:
\n(i) Started business with cash \u20b9 1,00,000.
\n(ii) Purchased goods for cash \u20b9 20,000 and on credit \u20b9 30,000.
\n(iii) Sold goods for cash costing \u20b9 10,000 and on credit costing \u20b9 15,000 both at a profit of 20%.
\nSolution:
\n\"TS<\/p>\n

Question 8.
\nDevelop an Accounting Equation from the following transactions:
\n\"TS
\nSolution:
\n\"TS<\/p>\n

 <\/p>\n

Question 9.
\nPrepare an Accounting Equation on the basis of the following transactions:
\n(i) Started business with Cash \u20b9 70,000
\n(ii) Credit purchase of goods \u20b9 18,000
\n(iii) Payment made to creditor \u20b9 17,500 in full settlement
\n(iv) Purchase of Machinery for Cash \u20b9 20,000
\n(v) Depreciation on Machinery \u20b9 2,000
\nSolution:
\n\"TS<\/p>\n

Question 10.
\nProve that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
\n(i) Commenced business with cash \u20b9 60,000.
\n(ii) Paid Rent in Advance \u20b9 500.
\n(iii) Purchased goods for Cash \u20b9 30,000 and Credit \u20b9 20,000.
\n(iv) Sold goods for Cash \u20b9 30,000 Costing \u20b9 20,000.
\n(v) Paid Salary \u20b9 500 and Salary Outstanding being \u20b9 100.
\n(vi) Bought motorcycle for personal use \u20b9 5,000.
\nSolution:
\n\"TS<\/p>\n

 <\/p>\n

Question 11.
\nShow the effect of the following transactions on assets, liabilities and capital using the Accounting Equation. Also prepare a Balance Sheet:
\n(i) Started business with Cash \u20b9 60,000
\n(ii) Rent Received \u20b9 2,000
\n(iii) Accrued Interest \u20b9 500
\n(iv) Commission received in advance \u20b9 1,000
\n(v) Amount withdrawn \u20b9 5,000
\nSolution:
\n\"TS<\/p>\n

Question 12.
\nProve that the Accounting Equation is satisfied in all the following transactions of Sameer Goel:
\n(i) Started business with cash \u20b9 10,000.
\n(ii) Paid rent in Advance \u20b9 300.
\n(iii) Purchased goods for cash \u20b9 5,000 and credit \u20b9 2,000.
\n(iv) Sold goods for cash \u20b9 8,000 costing \u20b9 4,000.
\n(v) Paid salary \u20b9 450 and salary outstanding being \u20b9100.
\n(vi) Bought motorcycle for personal use \u20b9 3,000.
\nSolution:
\n\"TS<\/p>\n

 <\/p>\n

Question 13.
\nShow the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last new equation balance:
\n\"TS
\nSolution:
\n\"TS
\n\"TS<\/p>\n

 <\/p>\n

Question 14.
\nRaghunath had the following transactions in an accounting year:
\n(i) Commenced business with cash \u20b9 50,000.
\n(ii) Paid in to bank \u20b9 10,000.
\n(iii) Purchased goods for Cash \u20b9 20,000 and Credit \u20b930,000.
\n(iv) Sold goods for Cash \u20b9 40,000 Costing \u20b9 30,000.
\n(v) Rent paid \u20b9 500.
\n(vi) Rent Outstanding \u20b9 100.
\n(vii) Bought furniture \u20b95,000 on credit.
\n(viii) Bought refrigerator for personal use \u20b9 5,000.
\n(ix) Purchased motorcycle for cash \u20b9 20,000.
\nCreate an Accounting Equations to show the effect of the above transaction on his assets, liabilities and capital and also show his final Balance Sheet.
\nSolution:
\n\"TS
\n\"TS<\/p>\n

 <\/p>\n

Question 15.
\nPrepare an Accounting Equation from the following :
\n(i) Started business with cash \u20b9 50,000 and goods \u20b9 30,000.
\n(ii) Purchased goods for cash \u20b9 30,000 and on credit from Karan \u20b9 20,000.
\n(iii) Goods costing \u20b9 40,000 were Sold for \u20b9 55,000.
\n(iv) Withdrew cash for personal use \u20b9 10,000.
\n(v) Rent outstanding \u20b9 2,000.
\nSolution:
\n\"TS<\/p>\n

Question 16.
\nShow an Accounting Equation for the following transactions:
\n(i) D. Mahapatra commenced business with cash of \u20b9 50,000 and \u20b9 1,00,000 by cheque; goods \u20b9 60,000; machinery \u20b9 1,00,000 and furniture \u20b9 50,000.
\n(ii) 1\/3 rd of above goods sold at a profit of 10% on cost, and half of the payment is received in cash.
\n(iii) Depreciation on machinery provided @ 10%.
\n(iv) Cash withdrawn for personal use \u20b9 10,000.
\n(v) Interest on drawings charged @ 5%.
\n(vi) Goods Sold to Gupta for \u20b9 10,000 and received a Bill Receivable for the same amount for 3 months.
\n(vii) Received \u20b9 10,000 from Gupta against the Bill Receivable on its maturity.
\nSolution:
\n\"TS
\nWorking Note:
\nRs.60,000 \u00d7 1\/3 = Rs.20,000 \u00d7 110% = Rs.22,000
\nHalf received in Cash = Rs.11,000<\/p>\n

 <\/p>\n

Question 17.
\nPrepare Accounting Equation from the following:
\n(a) Started business with cash \u20b9 1,00,000.
\n(b) Purchase goods for cash \u20b9 20,000 and on credit \u20b9 30,000.
\n(c) Sold goods for cash costing \u20b9 10,000 and on credit costing \u20b9 15,000 both at a profit of 20%.
\n(d) Paid salaries \u20b9 8,000.
\nSolution:
\n\"TS<\/p>\n

Question 18.
\nShow the accounting equation on the basis of following transactions:
\n(a) Ram started business with \u20b9 25,000.
\n(b) Purchased goods from Shyam \u20b9 10,000.
\n(c) Sold goods to Sohan costing \u20b9 1,500 for \u20b9 1,800.
\nSolution:
\n\"TS<\/p>\n

Question 19.
\nIf the capital of a business is \u20b9 3,00,000 and liabilities are \u20b9 50,000, loss \u20b9 70,000, calculate the total assets of the business.
\nSolution:
\nTotal Assets = Capital – Loss + Liabilities = Rs.3,00,000 – Rs.70,000 + Rs.50,000 = Rs.2,80,000
\nTotal Assets of the business is Rs.2,80,000<\/p>\n

Question 20.
\nIf total assets of a business are \u20b9 1,30,000 and net worth is \u20b9 80,000, calculate the creditors.
\nSolution:
\nCreditors = Total Assets – Net worth = Rs.1,30,000 – Rs.80,000 = Rs.50,000
\nCreditors is Rs.50,000.<\/p>\n

 <\/p>\n

Question 21.
\nA commenced his cloth business on 1st April, 2017 with a capital of \u20b9 30,000. On 31st March 2018, his assets were worth \u20b9 50,000 and liabilities of \u20b9 10,000. Find out his closing capital and profits earned during the year.
\nSolution:
\nClosing Capital = Assets – Liabilities = Rs.50,000 – Rs.10,000 = Rs.40,000
\nProfit = Closing Capital – Opening Capital = Rs.40,000 – Rs.30,000 = Rs.10,000<\/p>\n

Question 22.
\nIf capital of a business is \u20b9 1,40,000 and liabilities are of \u20b9 80,000, calculate the total assets of the business.
\nSolution:
\nTotal Assets = Liabilities + Capital = Rs.80,000 + Rs.1,40,000 = Rs.2,20,000
\nTotal Assets of the business is Rs.2,20,000<\/p>\n

Question 23.
\nCalculate the total assets if:
\n(i) Capital is \u20b9 40,000.
\n(ii) Creditors are \u20b9 25,000.
\n(iii) Revenue during the period is \u20b9 50,000.
\n(iv) Expenses during the period are \u20b9 40,000.
\nSolution:
\nCapital after Adjustments = Capital + Revenue – Expenses = Rs.40,000 + Rs.50,000 – Rs.40,000 = Rs.50,000
\nTotal Assets = Capital after adjustment + Creditors = Rs.50,000 + Rs.25,000 = Rs.75,000<\/p>\n

Question 24.
\n(a) A had a capital of \u20b9 75,000 on 1st April, 2017. He had also goods amounting to \u20b9 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
\n(b) After a period of one month, he came to know that he had suffered a loss of \u20b9 1,700. He withdrew \u20b9 800 for his personal use. Find out his capital and assets of the business.
\nSolution:
\na. Total Assets = Capital + Creditors = Rs. 75,000 + Rs. 15,000 = Rs. 90,000
\nb. Revised Capital = Capital – Loss – Drawings = Rs. 75,000 – Rs. 1,700 – Rs. 800
\ni. Revised Capital = Rs. 72,500
\nAssets = Revised Capital + Creditors = Rs. 72,500 + Rs. 15,000
\nii. Assets = Rs. 87, 500<\/p>\n

Question 25.
\n(a) Mohan started a business on 1st April, 2017 with a capital of \u20b9 10,000 and borrowed \u20b9 3,000 form a friend. He earned a profit of \u20b9 5,000 during the year ended 31st March, 2018 and withdrew cash \u20b9 4,000 for private use. What is his capital on 31st March, 2018 ?
\n(b) Mahesh started a business with a capital of \u20b9 15,000 on 1st April, 2017. During the year, he made a profit of \u20b9 3,000. He owes \u20b9 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2018 ?
\nSolution:
\nMohan Started the Business
\na. Capital on 31st March 2018 = Capital on April 01,2017 + Profit – Drawings
\n= Rs.10,000 + Rs.5,000 – Rs.4,000 = Rs.11,000
\nMahesh Started the Business
\nb. Total Assets on 31st March 2018 = Capital on April 01, 2017 + Profit + Creditors
\n= Rs.15,000 + Rs.3,000 + Rs.2,500 = Rs.20,500<\/p>\n

 <\/p>\n

Question 26.
\nMohan started a business on 1st April, 2017 with a capital of \u20b9 25,000 and a loan of \u20b9 12,500 borrowed from Shyam. During 2017-18 he had introduced additional capital of \u20b9 12,500 and had withdrawn \u20b9 7,500 for personal use. On 31st March, 2018 his assets were \u20b9 75,000. Find out his capital as on 31st March, 2018 and profit made or loss incurred during the year 2017-18.
\nSolution:
\nMohan Started the Business
\nCapital on 31st March 2018 = Assets – Loan from Shyam = Rs.75,000 – Rs.12,500 = Rs.62,500
\nProfit (or Loss) during the year 2017 – 18 = Capital on March 31, 2018 + Drawings – (Capital on April 01,2017 + Additional Capital)
\n= Rs. 62,500 + Rs. 7,500 – (Rs. 25,000 + Rs. 12,500) = Rs.70,000 – Rs.37,500 = Rs.32,500<\/p>\n

Question 27.
\nOn 31st March, 2018, the total assets and external liabilities were \u20b9 2,00,000 and \u20b9 6,000 respectively. During the year, the proprietor had introduced capital of \u20b9 20,000 and withdrawn \u20b9 12,000 for personal use. He made a profit of \u20b9 20,000 during the year. Calculate the capital as on 1st April, 2017.
\nSolution:
\nCapital on 31st March 2018 = Total Assets – External Liabilities = Rs. 2,00,000 – Rs. 6,000 = Rs. 1,94,000
\nCapital on 01st April 2017 = Capital on March 31, 2018 – Additional Capital + Drawings – Profit
\n= Rs. 1,94,000 – Rs. 20,000 + Rs. 12,000 – Rs. 20,000 = Rs. 1,66,000<\/p>\n

Question 28.
\nShow an Accounting Equation on the basis of the following transactions:
\n\"TS
\nSolution:
\n\"TS
\n\"TS<\/p>\n

 <\/p>\n

Question 29.
\nDraw an Accounting Equation on the basis of the following transactions:
\n\u200b(i) Commenced business with cash \u20b9 50,000, cheque \u20b9 1,00,000, goods \u20b9 30,000 and furniture \u20b9 20,000.
\n(ii) Car, personal asset of the proprietor, was sold for \u20b9 1,00,000 against cheque which he deposited in his Savings Account.
\n(iii) An amount of \u20b9 50,000 was transferred from his Savings Account to the firm’s Bank Account.
\n(iv) A new car was purchased for \u20b9 6,00,000 for office use. It was paid by taking loan from Bank of \u20b9 5,00,000 and balance by issue of cheque from firm’s Bank Account.
\n(v) Sold goods to Ajay on credit costing \u20b9 4,000 for \u20b9 5,000.
\n(vi) Sold goods for cash costing \u20b9 12,000 for \u20b9 16,000.
\n(vii) Purchased good for cash \u20b9 40,000.
\n(viii) Purchased goods on credit for \u20b9 20,000.
\n(ix) Paid rent \u20b9 3,000 including \u20b9 2,000 in advance.
\n(x) Paid salaries \u20b9 2,000.
\n(xi) Sold goods costing \u20b9 8,000 for \u20b9 10,000.
\n(xii) Salaries outstanding \u20b9 1,000.
\n(xiii) Charge depreciation on furniture \u20b9 500.
\nSolution:
\n\"TS
\n\"TS
\n\"TS
\nNote: In transaction (ii), there is not impact on the Accounting Equation, therefore it is not shown in the above statement.<\/p>\n

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation, drop a comment below and we will get back to you at the earliest.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation. Board CBSE Textbook NCERT Class Class 11 Subject Accountancy Chapter Chapter 2 Chapter Name Accounting Equation Number of Questions Solved 29 Category …<\/p>\n

TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation<\/span> Read More »<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[4],"tags":[],"yoast_head":"\nTS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation - MCQ Questions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mcq-questions.com\/ts-grewal-accountancy-class-11-solutions-chapter-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation - MCQ Questions\" \/>\n<meta property=\"og:description\" content=\"TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation are part of TS Grewal Accountancy Class 11 Solutions. 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