Accounting Equations

Commerce ⇒ Accountancy

Accounting Equations starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Accounting Equations. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

A business has assets of Rs. 2,00,000 and capital of Rs. 1,20,000. What are its liabilities?

A business has assets of Rs. 2,50,000, liabilities of Rs. 1,00,000, and earns a profit of Rs. 30,000. What is the new capital?

A business has assets of Rs. 3,00,000 and liabilities of Rs. 1,20,000. If the owner withdraws Rs. 20,000 for personal use, what will be the new capital?

A business has assets of Rs. 4,00,000, liabilities of Rs. 1,50,000, and the owner withdraws Rs. 30,000. What is the capital after withdrawal?

A business has assets of Rs. 5,00,000 and liabilities of Rs. 2,00,000. If the owner introduces additional capital of Rs. 50,000, what will be the new capital?

A business started with cash Rs. 1,00,000. It purchased furniture for Rs. 20,000 and paid salaries Rs. 5,000. What is the closing capital?

A business started with cash Rs. 50,000. It purchased goods for Rs. 20,000 on credit. What will be the new accounting equation?

Describe the impact on the accounting equation when goods are sold on credit.

Explain the dual aspect concept in relation to the accounting equation.

Explain the effect of depreciation on the accounting equation.

Explain the effect of the following transaction on the accounting equation: Purchased goods for cash.

Explain with an example how a transaction can affect both assets and liabilities.

If a business pays rent of Rs. 2,000, what will be the effect on the accounting equation?

If a business pays Rs. 10,000 to a creditor, what is the effect on the accounting equation?

If a business receives commission of Rs. 5,000, what is the effect on the accounting equation?

If the assets of a business are Rs. 1,50,000 and liabilities are Rs. 40,000, what is the amount of capital?

If the capital at the beginning of the year is Rs. 1,00,000, profit earned during the year is Rs. 20,000, and drawings are Rs. 10,000, what is the closing capital?

State the basic accounting equation.

State the effect of the following transaction on the accounting equation: Goods sold for cash at a profit.