Gujarat Board GSEB Textbook Solutions Class 11 Commerce Accounts Part 1 Chapter 5 Accounting Equation and Business Transactions Textbook Exercise Questions and Answers.
Gujarat Board Textbook Solutions Class 11 Accounts Part 1 Chapter 5 Accounting Equation and Business Transactions
GSEB Class 11 Accounts Accounting Equation and Business Transactions Text Book Questions and Answers
1. Write the correct option from those given below each question :
Question 1.
When an owner introduces capital in business …………..
(a) increase in capital – increase in liability.
(b) increase in capital – increase in assets.
(c) increase in one liability – decrease in another liability.
(d) increase in one asset – decrease in another assets.
Answer:
(b) increase in capital – increase in assets.
Question 2.
When goods purchased on credit ……………….
(a) increase in assets – increase in liability.
(b) decrease in assets – decrease in liability.
(c) increase in assets – decrease in liability.
(d) decrease in assets – increase in liability.
Answer:
(a) increase in assets – increase in liability.
Question 3.
When revenue expenses are paid in cash ……………
(a) increase in assets – increase in liability.
(b) decrease in assets – decrease in capital.
(c) increase in assets – increase in capital.
(d) decrease in assets – decrease in liability.
Answer:
(b) decrease in assets – decrease in capital.
Question 4.
When revenue income is received in cash ………………
(a) increase in assets – increase in liability.
(b) increase in assets – decrease in liability.
(c) increase in assets – increase in capital.
(d) increase in capital – decrease in liability.
Answer:
(c) increase in assets – increase in capital.
Question 5.
When goods distributed as sample
(a) decrease in assets – decrease in liability.
(b) increase in assets – increase in liability.
(c) increase in assets – increase in capital.
(d) decrease in assets – decrease in capital.
Answer:
(d) decrease in assets – decrease in capital.
2. Write journal entries for the following transactions and explain accounting treatments based on equation :
Questions
(1) Commenced business with capital of ₹ 80,000.
(2) ₹ 20,000 deposited with bank and opened account.
(3) Goods of ₹ 40,000 purchased from Himani on credit.
(4) Goods of ₹ 30,000 purchased for cash.
(5) Goods of ₹ 35,000 sold for ₹ 55,000 to Jaslin on credit.
(6) Goods of ₹ 10,000 sold for ₹ 18,000 in cash.
(7) Goods of ₹ 2,000 returned to Himani.
(8) Goods of ₹ 4,000 returned by Jaslin.
(9) Accounts are settled with Himani and Jaslin.
(10) Withdrew ₹ 5,000 from bank.
(11) Salary of ₹ 4,000 paid by cheque.
(12) Commission received in cash ₹ 3,000 and ₹ 2,500 are outstanding.
(13) Rent paid in cash ₹ 4,000 and ₹ 1,500 are outstanding.
(14) Goods donated ₹ 2,000.
(15) Furniture of ₹ 15,000 purchased from Prexa Furniture Mart.
(16) College fees of daughter paid ₹ 6,000.
(17) ₹ 500 bank has credited for interest and debited ₹ 200 for bank charges.
(18) ₹ 2,500 received in advance for interest.
(19) Advertisement expense paid in advance ₹ 2,000.
Answer:
