accounts

1. Accounting Equation: Assets +Expenses=Liabilities +Capital +Incomes
24 November 2022
Dr. Neeti Mathur, Introduction to Financial
Accounting 1

2. Q1.If the liabilities of a business is Rs. 75,000 and the capital is Rs.
85,000.Find out the total assets.
Accounting Equation: Assets +Expenses=Liabilities +Capital +Incomes
Assets= Rs.75,000+85,000=1,60,000
24 November 2022
Dr. Neeti Mathur, Introduction to Financial
Accounting, 2

3. Q2. Cash Rs.10,000, Stock Rs. 15000,building Rs.10,000, machinery Rs.1,80,000,
Debtors of Rs.45,000 and Creditors Rs. 27,500. Ascertain the capital.
Accounting Equation: Assets +Expenses=Liabilities +Capital +Incomes
Assets=
Cash Rs.10,000 +Stock Rs. 15000+building Rs.10,000+ machinery Rs.1,80,000+
Debtors of Rs.45,000 =2,60,000
Liabilities= Creditors Rs. 27,500
Capital= Assets- Liabilities=2,60,000-27,500=2,32,500 Rs.

4. Q3.If the total assets of a business are Rs.1,50,000 and capital is
Rs.75,000, calculate creditors.
Accounting Equation: Assets +Expenses=Liabilities +Capital +Incomes
Rs.1,50,000= Rs.75,000+Liabilities
Liabilities= Rs.1,50,000- Rs.75,000= Rs.75,000
24 November 2022
Dr. Neeti Mathur, Introduction to Financial
Accounting, 4

5.  Q4.If the capital of a business is Rs.80,000 and the liabilities are
Rs.60,000,calculate the total assets of the business.

6. Q5.Cash Rs.10,000, Stock Rs. 15000,building Rs.10,000, machinery Rs.1,80,000,
Debtors of Rs.45,000 and Creditors Rs. 27,500. Ascertain the capital.
Accounting Equation: Assets +Expenses=Liabilities +Capital +Incomes
 Cash +Stock+ Building+ Machinery +Debtors – Creditors=Capital
24 November 2022
Dr. Neeti Mathur, Introduction to Financial
Accounting, 6

7. Q6. Calculate total assets if, Capital is Rs.50,000,Creditors Rs.30,000, Revenue during
the period Rs.52,000 and Expenses during the same period are Rs. 38,000.
Accounting Equation: Assets +Expenses=Liabilities +Capital +Incomes
Expenses Rs. 38,000= Capital is Rs.50,000+Creditors Rs.30,000+ Revenue Rs.52,000

8. Q7.Ascertain his capital. Cash Rs.2,500, Bank Rs.4,750, Debtors
Rs.1,800, Creditors Rs.2,200, Plant and Machinery Rs.8,000, Building
Rs.20,000, Furniture Rs.2,400, Bills Receivables Rs.5,650, Bills
payable Rs.2,350.
Accounting Equation: Assets +Expenses=Liabilities +Capital
+Incomes
Cash Rs.2,500+Bank Rs.4,750+Debtors Rs.1,800+Plant and
Machinery Rs.8,000+Building Rs.20,000+ Furniture Rs.2,400+ Bills
Receivables Rs.5,650-(Bills payable Rs.2,350 +Creditors Rs.2,200)=
Capital
24 November 2022
Dr. Neeti Mathur, Introduction to Financial
Accounting, 8