CBSE Class 11 Accountancy Accounting Equation Worksheet Set A

Read and download free pdf of CBSE Class 11 Accountancy Accounting Equation Worksheet Set A. Download printable Accountancy Class 11 Worksheets in pdf format, CBSE Class 11 Accountancy Chapter 3 Recording of Transactions-I Worksheet has been prepared as per the latest syllabus and exam pattern issued by CBSE, NCERT and KVS. Also download free pdf Accountancy Class 11 Assignments and practice them daily to get better marks in tests and exams for Class 11. Free chapter wise worksheets with answers have been designed by Class 11 teachers as per latest examination pattern

Chapter 3 Recording of Transactions-I Accountancy Worksheet for Class 11

Class 11 Accountancy students should refer to the following printable worksheet in Pdf in Class 11. This test paper with questions and solutions for Class 11 Accountancy will be very useful for tests and exams and help you to score better marks

Class 11 Accountancy Chapter 3 Recording of Transactions-I Worksheet Pdf

CBSE Class 11 Accountancy Chapter 3 Accounting Equation Multiple Choice Questions

Question. The business documents which serves as the evidence of the business transactions are known as
(a) First hand documents
(b) Bills
(c) Notes
(d) Source documents
Answer. D

Question. Which of the following details is usually provided on the source documents?
(a) Nature of transaction
(b) Date
(c) Parties involved
(d) All of the above
Answer. D

Question. Which of the following statements about source document is incorrect?
(i) They are required for audit and tax assessments.
(ii) They do not serve as legal evidence in case of a dispute.
(iii) These documents are written and authentic proof of the correctness of the recorded transaction.
(a) (ii) and (iii)
(b) Only (ii)
(c) Only (iii)
(d) All of these
Answer. B

Question. Source documents are also referred to as
(a) first information documents
(b) notes
(c) supporting documents
(d) invoices
Answer. C

Question. Which written document is prepared by seller for goods sold against cash which acts as an evidence for both the seller and the purchaser of goods?
(a) Cash-in-slip
(b) Cash bill
(c) Cash memo
(d) Voucher
Answer. C

Question. Rates of items sold are not mentioned on cash memo.
(a) True
(b) False
(c) Patially true
(d) Can’t say
Answer. B

Question. When a trader sells goods on credit, he prepares a sale ……… which contains the name of the party to whom goods are sold, the rate, quantity and the total amount of sale.
(a) memo
(b) bill
(c) invoice
(d) Both (b) and (c)
Answer. D

Question. Which of the following statements about original copy of invoice/bill is correct?
(a) It is kept with seller for making records in books of accounts
(b) It is made for cash transactions
(c) It is sent to the purchaser
(d) All of the above
Answer. C

Question. Which of these information is present on invoice?
(i) Party to whom goods are sold
(ii) Goods sold
(iii) Total sale amount
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) All of the above
Answer. D

Question. Which source document is issued by a trader when he receives cash from the customer?
(a) Receipt
(b) Cash memo
(c) Cheque
(d) Pay-in-slip
Answer. A

Question. Original copy of receipt is kept by trader himself/herself for making records in books of accounts.
(a) True
(b) False
(c) Partially false
(d) Can’t say
Answer. B

Question. In which situation, a source document containing the date of transaction, the name of account debited, the amount and the reasons for debit is prepared?
(a) When goods are returned to a supplier
(b) When goods are received from a customer
(c) Both (a) and (b)
(d) None of the above
Answer. A

Question. Debit note is sent to a ……… when the goods are ……… .
(a) customer, delivered
(b) supplier, delivered
(c) supplier, returned
(d) customer, returned
Answer. C

Question. Which source document is sent to inform about the credit made in account of buyer alongwith the reasons mentioned in it?
(a) Credit slip
(b) Credit bill
(c) Credit note
(d) Credit receipt
Answer. C

Question. A duplicate copy of the credit note is retained by …… for record purpose.
(a) buyer
(b) seller
(c) customer
(d) Both (b) and (c)
Answer. B

Question. Which of the following source documents is used for depositing cash or cheques into bank?
(a) Counterfoil
(b) Pay-in-slip
(c) Cash slip
(d) Pay note
Answer. B

Question. Pay-in-slip is a form which is available from a bank having a counterfoil which is returned to the depositor with …… signature and bank’s stamp as receipt.
(a) depositor’s
(b) bank manager’s
(c) cashier’s
(d) Both (a) and (c)
Answer. C

Question. What will be the effect of following transaction on the accounting equation? Goods sold on credit to X (costingRs 10,000) for Rs 15,000.
(a) Assets, (Rs15,000); Liabilities, (Rs15,000); Capital, 0
(b) Assets (Rs10,000) ; Liabilities, (Rs15,000);Capital, Rs5000
(c) Assets (Rs5,000) ; Liabilities, 0; Capital,(Rs5000)
(d) None of the above
Answer. D

Question. From the following information, calculate the total assets of the business Capital = Rs 80,000; Creditors = Rs 60,000, Revenue during the period = Rs 1,00,000 Expenses during the period = Rs 80,000; Value of unsold stock = Rs 20,000
(a) Rs80,000
(b) Rs1,60,000
(c) Rs1,80,000
(d) Rs1,40,000
Answer. B

Question. Match the columns.
Column I                               Column II
A. Cash purchases            (i) Invoice
B. Deposited cash in         (ii) Debit note
bank
C. Returned goods           (iii) Pay-in-slip
D. Credit sales                  (iv) Cash memo

Codes
      A    B    C    D 
(a) (i)   (ii) (iii) (iv)
(b) (iv) (iii) (ii) (i)
(c) (iv) (iii) (i) (ii)
(d) (iv) (ii) (iii) (i)
Answer. B

Question. Match the columns.
Column I                     Column II
A. Purchased             (i) Assets and
goods for cash               liabilities will decrease 
B. Capital                  (ii) Assets and capital       
brought in  
will decrease
C. Paid rent              (iii) Assets decrease as
                                 well as increase
D. Paid to                (iv) Assets and capital          
creditors                  will increase 
Codes
       A    B    C   D
(a) (iii) (iv) (ii) (i)
(b) (iv) (iii) (i) (ii)
(c) (iii) (iv) (i) (ii)
(d) (iii) (i) (iv) (ii)
Answer. A


CBSE Class 11 Accountancy Chapter 3 Accounting Equation Assertion–Reasoning MCQs

Direction -There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Question. Assertion (A) Auditors can easily vouch the vouchers and use them as documentary evidence in future.
Reason (R) A serial number is put on each voucher and the relative source documents are attached with the voucher.
Answer. A

Question. Assertion (A) A business transaction may result in change in either assets, liabilities or capital of firm and as a result, the total assets might not equate with total of liabilities and capital.
Reason (R) If a business transaction results in increase of assets, there will also be a corresponding increase in amount of either capital or liabilities by same amount.
Answer. C

Question. Assertion (A) In accounting equation, each transaction affects both sides of the equation, i.e. Assets side and Liabilities + Capital side.
Reason (R) Assets of a business are purchased either from the funds (capital) supplied by the proprietor or from the funds provided by external parties.
Answer. C

Question. Assertion (A) If goods worth ` 4,000 are sold for ` 3,500 at credit, then assets will decrease, liabilities will be unchanged and capital will decrease.
Reason (R) In case, goods are sold on credit, goods (assets) are decreased and debtors (assets) are increased. Also if goods are sold at a loss, the capital is reduced.
Answer. A


CBSE Class 11 Accountancy Chapter 3 Accounting Equation Case Based MCQs

Direction Read the following case study and answer questions on the basis of the same.

Joe and Jimmy started a bat manufacturing company. They set up a factory in Meerut (UP) on a land purchased for ` 40,00,000. They purchased raw material from a trader in Jalandhar (Punjab) for ` 5,00,000 at credit. However, they did not like the quality of some of the goods that were sent and therefore decided to return the same. The company were producing premium bats. Even some of the domestic players of Indian cricket team purchased bats from the company and endorsed the same as well. This led to mass orders rolling in frequently. After a year, they also started to get bulk orders from academies, institutes and corporates. On one instance, they were given an order by NPS Public School, one of the largest school chains in the country for bat worth ` 2,50,000.
The company took a week to fulfil and received half the payment while the other half was due for 6 months later. The company successfully delivered the bats to the head office of NPS Public School in Delhi.

Question. What was the accounting equation for the transaction of land purchased? (The options are in the format of Assets = Liabilities + Capital)
(a) 40,00,000 = 0 + 40,00,000
(b) 40,00,000 + (40,00,000) = 0 + 0
(c) 0 = 40,00,000 + (40,00,000)
(d) 40,00,000 = 40,00,000 + 0
Answer. B

Question. The company must have received ……… from the seller of raw materials as a source document.
(a) cash memo
(b) invoice
(c) credit note
(d) receipt
Answer. B

Question. What is issued by the company along with the goods returned?
(a) Credit note
(b) Debit note
(c) Bill
(d) Receipt
Answer. B

Question. As a result of transaction with NPS school, the company’s net assets ………, liabilities ……… and capital ……… . (ignore profit/loss).
(a) decreased, decreased, unchanged
(b) increased, increased, unchanged
(c) unchanged, unchanged, unchanged
(d) increased, unchanged, unchanged
Answer. C

Question. As a result of transaction of ordering raw material, the liabilities of company increased.
(a) True
(b) False
(c) Partially true
(d) Can’t say
Answer. A

Chapter Name: Accounting Equation

Question

1 Give 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

2 How 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

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


4 Peter has the following assets and liabilities as on 31st December 2010.Ascertain his capital: Cash  Rs  2,500; Bank  Rs 4750; Debtors Rs 1,800; Creditors  Rs 2,200; Plant and Machinery  Rs 8,000; Building  Rs 20,000; Furniture  Rs  2,400; Bills receivable  Rs 5,650: Bills Payable Rs 2,350.


5 Prepare an Accounting Equation from the following:

1. Started business with Cash  Rs 50,000.

2. Paid Salary Rs 5,000.

3. Rent Outstanding  Rs 1,000.

4. Accrued Interest  Rs 1,500

5. Interest on Capital  Rs  2, 500.

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

7. Goods costing  Rs 10,000 sold at a profit of 25%, out of which  Rs 7,000 received in cash. 8.Purchased a Television for personal use  Rs 2,500.

6 Prepare Accounting Equation from the following:

1.Nitin started business with cash  Rs 75,000; goods Rs 30,000; Machinery  Rs 50,000 and Furniture Rs 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 Rs 10,000.

5. Interest on drawing charged @ 5%.

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

7 .Received  Rs  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  Rs 80,000; Goods  Rs 30,000; Furniture  Rs 40,000.

2. Purchased goods on credit from Nidi, Rs  15,000 and on cash from Mera  Rs  10,000.

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

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

5. Received cash from debtors  Rs 3,200 in full settlement .

6. Sold goods for cash Rs 5,000.

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

8. Rent outstanding  Rs  5,000.

9. Accrued interest  Rs 10,000.

8 Prepare an Accounting Equation from the following:

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

2. Goods costing Rs 24,000 sold at a profit of 331/3% and 3/4th payment received in Cash.

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

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

5. Interest on drawings at the rate of 55.

6. Goods given as charity  Rs 1,000.

7. Loss of Cash by theft Rs 1,000.

8. Loan taken was repaid with interest Rs  150.

9. Purchased Securities Rs10,000.

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

9 Prepare an Accounting Equation from the following information:Jacob Started business with  Rs15,00,000.

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

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

3.Bought Plant and Machinery for business for  Rs  Rs1,25,000 and advance of Rs 10,000 in cash is paid to M/s Ramjee Lal.

4. Goods purchased from M/s Sunil Traders for Rs 55,000.

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

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

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

10 Prepare an Accounting Equation from the following information: 1-4-2009 Business started with Cash  Rs 1,50,000.

1-4-2009 Goods purchased from Manisha  Rs 36,000.

1-4-2009 Stationery purchased for cash  Rs 2,200.

2-4-2009 Opened a bank account with SBI for  Rs 32,000.

3-4-2009 Goods sold to Priya for  Rs16,000.

5-4-2009 Purchased goods from Namita for  Rs 20,000.

10-4-2009 Insurance paid by cheque Rs2,250.

11-4-2009 Cash withdrawn for household purpose  Rs 5,000.

13-4-2009 Interest received Rs 250 in cash.

14-4-2009 Rent paid in advance Rs 550.

11 Calculate the capital as on 1-1-2010 in each of the following cases

1. On 31-12-2010 the total assets and external liabilities were  Rs 30,000 and  Rs900 respectively. During the year the proprietor earned  Rs 3,000.

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

12 Calculate total equity and owners equity if:

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

2. Equity of Creditors at the end  Rs 30,000.

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

4. Expenses during the same period are  Rs 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 Rs35,000 and goods  Rs15,000.

2. Salaries paid  Rs 2,000.

3. Wages Outstanding Rs 200.

4. Prepaid Insurance Rs700.

5. Interest due but not paid  Rs 100.

6.Rent paid in advance  Rs 150.

14 Show the accounting equation on the basis of the following transactions

1. Started business with Cash  Rs 60,000.

2. Rent received Rs2,000.

3. Accrued Interest Rs500.

4. Commission received in advance Rs 1,000.

15 Mr.Pai started a business with a cash investment of  Rs 21,00,000.The following business transactions have been recorded:

1. Paid three months advance rent for office accommodation  Rs 2,520.

2. Bought Car for Office Rs 12,00,000.

3. Purchased furniture  Rs 42,250.

4. Bought Computer from Computer Visions  Rs25,000.

5. Sold furniture at cost to Peter for  Rs 21,000.

6. Peter paid  Rs 15,000 in Cash and accepted a bill at three months for the balance.

7. Paid telephone bill Rs 2,500 and electricity bill of  Rs 4,500.

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

9. Collected  Rs 3,500 as Commission and Commission received in advance  Rs 2,500.

10. Purchased goods for Rs 11,250 at a trade discount of 10%.

16 Amit had the following transactions. Use accounting equation to show the effect on his assets liabilities and Capital.

1. Commenced business with Cash  Rs 12,50,000.

2. Purchased securities for  Rs 15,000 in cash.

3. Purchased goods for 1,00,000 at a trade discount of 10% and cash discount of 5% from Mahek. Paid the cash on the same day and availed the cash discount.

4. Sold goods costing  Rs 1000 for 1,200.

5. Received dividend on securities  Rs 250.

6. Goods lost by fire Rs 1000.

7. Purchased goods for cash  Rs 12,000 and on credit  Rs 15,000.

8. Mr.White sold goods to us  Rs 23,500.

9. Settled White’s account by paying Rs 23,000.

10. Mr.Black purchased goods from us  Rs 10,000 and accepted a bill of exchange.

11. Settled the Creditors account by paying 14,500.

17 Show the Accounting equation on the basis of the following transactions and prepare a Balance Sheet.

1. Shyam commenced business with cash  Rs35,00,000; Goods  Rs 80,000; Furniture  Rs 2,00,000.

2. Sold goods costing  Rs 24,000 for cash to Ramesh  Rs26,500.

3. Commission received in advance Rs 2,500.

4. Depreciation on furniture  Rs4050.

5. Deposited in the bank  Rs 2,50,000.

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

7. Paid  Rs 7500 for loan and  Rs 250 as interest.

8. Accrued interest  Rs 250.

9.Goods destroyed by fire (Cost  Rs 500, Sale price  Rs 600)

10. Withdrew  Rs 550 for personal use.

18 Show the accounting equation on the basis of the following transactions:

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

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

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

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

5) Bought goods from Ramesh  Rs 30,000.

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

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

8) Paid  Rs 29,700 to Ramesh in full settlement

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

10) Withdrew  Rs 1,000 for personal use.

11) Withdrew goods for personal use(cost  Rs 500, sale price  Rs600).

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

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

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

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

16) Paid rent in advance Rs  2,000.

17) Accrued interest Rs 500.

18) Commission received in advance Rs 1,000.

19) Charged depreciation of Rs 400 on furniture.

19 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.

20 Mr. X commenced his business on 1st April, 2008 by introducing capital of Rs 50,000. During the year, following transactions had taken place

                                                                                      Amount

(a) Bought Machine for cash.                                             Rs  20,000

(b) Purchased goods for                                                          24,000

(c) Sold goods (costing Rs 9,500) to Om for cash.                     20,000

(d) Purchased goods from Azhar.                                              14,000

(e) Introduced additional capital.                                              16,000

(f) Commission received in advance.                                         2,000

(g) Paid to Creditors Rs 10,500 in full settlement.

(h) Bought Computer for his personal use.                                10,000

(i) Rent paid for the year.                                                        10,000

(j) Payment for stationery                                                        400

(k) Sold goods (costing Rs 12,000) for Rs  16,000. Out of which 2,000 received in cash.

Show the above transactions in accounting equations.

 

Please click on below link to download CBSE Class 11 Accountancy Accounting Equation Worksheet Set A

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CBSE Class 11 Accountancy Chapter 3 Recording of Transactions-I Worksheet

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