# GSEB Solutions Class 11 Accounts Part 1 Chapter 5 Accounting Equation and Business Transactions

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.
(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.
(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.
(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.
(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.
(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 â‚¹ 80,000.
(2) â‚¹ 20,000 deposited with bank and opened account.
(3) Goods of â‚¹ 40,000 purchased from Himani on credit.
(4) Goods of â‚¹ 30,000 purchased for cash.
(5) Goods of â‚¹ 35,000 sold for â‚¹ 55,000 to Jaslin on credit.
(6) Goods of â‚¹ 10,000 sold for â‚¹ 18,000 in cash.
(7) Goods of â‚¹ 2,000 returned to Himani.
(8) Goods of â‚¹ 4,000 returned by Jaslin.
(9) Accounts are settled with Himani and Jaslin.
(10) Withdrew â‚¹ 5,000 from bank.
(11) Salary of â‚¹ 4,000 paid by cheque.
(12) Commission received in cash â‚¹ 3,000 and â‚¹ 2,500 are outstanding.
(13) Rent paid in cash â‚¹ 4,000 and â‚¹ 1,500 are outstanding.
(14) Goods donated â‚¹ 2,000.
(15) Furniture of â‚¹ 15,000 purchased from Prexa Furniture Mart.
(16) College fees of daughter paid â‚¹ 6,000.
(17) â‚¹ 500 bank has credited for interest and debited â‚¹ 200 for bank charges.