Business Accounting Study Material

BUSINESS ACCOUNTING

Table of Contents
Question: 1.......................................................................................................................................3
Question: 2.......................................................................................................................................4
Preparation of T-accounts............................................................................................................4
Question: 3.......................................................................................................................................6
Question: 4.......................................................................................................................................6
Question: 5.......................................................................................................................................7
Question: 6.......................................................................................................................................8
Question: 7.......................................................................................................................................8
Question: 8.....................................................................................................................................10
Question: 9.....................................................................................................................................10
Question: 10...................................................................................................................................11
REFERENCES..............................................................................................................................13

Question: 1
(i) Assets = liabilities + capital
a. Assets = 20000, liabilities = 0, capital = x
20000 = 0 + x
x (capital) = 20000.
b. Assets = 15000, liabilities = 5000, capital =?
Capital + liabilities = Assets
Capital + 5000 = 15000
Capital = 15000 – 5000 = 10000.
c. Assets = 16400, liabilities =? Capital = 8850
Liabilities = Assets – capital
Liabilities = 16400 – 8850 = 7550.
d. Assets =? Liabilities = 3850, Capital = 10250
Assets = 10250 + 3850 = 14100.
e. Assets = 25380, liabilities =? Capital = 6950
Liabilities = Assets – Capital
Liabilities = 25380 – 6950 = 18430.
(ii)
S.no
.
Particular of
transactions
Assets = Liabilities + Capital
Bank + Computer + Van – A Abela = Loan +
Capital
1. Introduction of
capital in the
bank for
starting
business
8000 8000
8000 =
8000
2. Bought
computer
through
Cheque
(4000) 4000
4000 4000 =
8000

3. Acquisition of
loan through
Cheque
3000 = 3000
7000 4000 = 3000
8000
4. Bought van
through
Cheque
(6000) 6000
1000 4000 6000 = 3000
8000
5. Received
payment from
account
receivable
250 (250)
1250 + 4000 + 6000 - 250 = 3000 +
8000
Question: 2
Preparation of T-accounts
Capital Account
Date Particulars Amoun
t
Date Particulars Amoun
t
1/1/2021 By Bank Account 25000
31/1/21 To Balance c/d 25000
1/2/2021 By Balance b/d 25000
Business Bank
Account
Date Particulars Amoun
t
Date Particulars Amoun
t
1/1/2021 To Capital account 25000 2/1/202
1
By Rent account 2000
10/1/202
1
To Sales account 6000 31/1/21 By Balance c/d 29000
1/2/2021 To Balance b/d 29000
Rent Account
Date Particulars Amount Date Particulars Amoun
t
2/1/202
1
To Bank account 2000