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Accounting Equation and Transactions Guide

The document consists of two sections focused on accounting principles. Section A includes exercises related to the accounting equation and the effects of transactions on assets, liabilities, and capital. Section B covers the double entry system, requiring the preparation of entries for various transactions and the creation of T-accounts.

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uzairnaeeem23
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2 views8 pages

Accounting Equation and Transactions Guide

The document consists of two sections focused on accounting principles. Section A includes exercises related to the accounting equation and the effects of transactions on assets, liabilities, and capital. Section B covers the double entry system, requiring the preparation of entries for various transactions and the creation of T-accounts.

Uploaded by

uzairnaeeem23
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SECTION A​

Accounting equation [10]​


​
Q1:Complete the gaps in the following table using the concept of ​
Accounting Equation.
​

Assets Liabilities Capital

A 20,000 3,400 ?

B 23,000 8,800 ?

C 19,200 ? 3,200

D ? 7,900 17,300

E ? 18,500 51,900

[5]
A: ​
​
B:

C:
​
D:
​
E: ​
​

​
​
Q2:The following table shows some transactions. Tick the columns
to show the effects of these transactions.​

# Assets Liabilities Capital

A We pay creditor $310 by cheque

B Bought fixtures $175 paying in cash

C Bought goods on credit $630

D The Owner introduces another $1,200 cash into the


business

E We return goods costing $90 to the supplier whose


bill we had not paid

[5]​

SECTION B​
Double Entry System & Ledgers(T-Accounts) [20]
​
Q1: Prepare a Double entry for each transaction.​

PARTICULARS Account to be Account to be


Debited and Amount Credited and
Amount

On 1st April, Ahmed introduced $50,000 as


capital and deposited $35,000 in the bank
and kept the remaining in cash at hand.

On 5th April,Ahmed bought a Motor vehicle


for $10,000 by cheque.

On 7th April,Ahmed purchased goods worth


$3,050 on credit from [Link]

On 10th April,Ahmed purchased goods costing


$4,000 by cash.
On 11th April,Ahmed Purchased stationary of
$3,000 by cash.

On 15th April,Ahmed sold goods through cash


for $2,500.

On 17th April,Ahmed returned some goods back


to [Link] as they Were [Link] goods
amounted to $450

On 21st April,Ahmed sold goods on credit to


[Link] for $2,000.

On 25th April,Ahmed bought Fixtures and


Fittings for $15,[Link] amount Was paid
through the Bank.

On 28th April,Ahmed Purchased goods on


credit From [Link] for $2,800.

On 29th April [Link] lent us $1,500 paying


us the money by cheque.

On 30th April Ahmed Paid $7,000 cash into


the bank.
​
[10]​
(B) Prepare Ledgers(T-Accounts) [10]
​
​

​
​
​

​
​
​

​
​
​

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