XI Accounting Class 09 Accounting Equation Problems

XI Accounting Class 09 Accounting Equation Problem #01

ACCOUNTING EQUATION 

Assets = liabilities + owner’s equity

liabilities = Assets - owners equity

owner’s equity = Assets - liabilities

Question # 01

Total assets 300,000 and total liabilities 150,000 calculate Equity?

Solution

Accounting Equation

 Assets = liabilities + owner’s equity

Owner’s equity = Assets - liabilities

Owner’s equity = 300,000-150,000

Owner’s equity = 150,000

Question # 02

total liabilities 150,000 and owner equity 150,000 calculate assets?

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Assets = 150,000    + 150,000

Assets = 300,000

Question # 03

 Total assets 110,000 and equity 90,000 calculate liabilities?

Solution

Accounting Equation

 Assets = liabilities + owner’s equity

Liabilities = Assets - owner’s equity

Liabilities = 110,000 - 90,000

Liabilities = 20,000

Question # 03 (a) The assets of business entity having liabilities of Rs.60,000 and owner’s equity Rs.120,000

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Assets =  60,000 +  120,000

Assets = 180,000

b. The owner’s equity of business entity having assets of Rs.600,000 and liabilities

Rs.250,000.

Solution

Accounting Equation

 Assets = liabilities + owner’s equity

Owner’s equity =  Assets - liabilities

Owner’s equity =  600,000 - 250,000

Owner’s equity =  350,000

c.  The liabilities of business entity having assets of Rs.310,000 and owner’s equity

Rs.70,000.

Solution

Accounting Equation

 Assets = liabilities + owner’s equity

Liabilities = Assets - owner’s equity

Liabilities =  310,000 - 70,000

Liabilities = 240,000

Question # 4)1993 Regular & Private – BIEK For each of the following determine the underlined missing item:-

(a) The liabilities of a business entity having assets of Rs.200,000 and owner’s equity of

Rs.90,000.

Solution

Accounting Equation

 Assets = liabilities + owner’s equity

Liabilities = Assets - owner’s equity

Liabilities =  200,000 - 90,000

Liabilities = 110,000

(b) The assets of a business entity having liabilities of Rs.50,000 and owner’s equity of

Rs.100,000.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Assets =  50,000 +  100,000

Assets = 150,000

(c) The owner’s equity of a business having assets of Rs.80,000 and liabilities of Rs.40,000.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Owner’s equity = Assets - liabilities

Owner’s equity =  80,000 - 40,000

Owner’s equity = 40,000

(d) The revenue of a business entity having expenses of Rs.60,000 and net income of

Rs.15,000

Solution

Revenue = expense + Profit/net income

.Revenue = 60,000  + 15,000

Revenue =  75,000

.

(e) The expenses of a business entity having revenues of Rs.90,000 and net loss of Rs.8,000.

Solution

Expense = Revenue + Loss 

Expense =  90,000 + 8,000

Expense =  98,000

.

Question # 5)  2002 Private – BIEK  For each of the following determine the underlined missing item:-

(a) The liabilities of a business entity having assets of Rs.400,000 and owner’s equity of

Rs.180,000.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Liabilities = Assets - owner’s equity

Liabilities =  400,000 - 180,000

Liabilities = 220,000

(b) The assets of business entity having liabilities of Rs.100,000 and owner’s equity of

Rs.200,000.

Solution

Accounting Equation

 Assets = liabilities +   owner’s equity

 Assets = 100,000    + 200,000

Assets = 300,000

(c) The owner’s equity of business having assets of Rs.1600,000 and liabilities of Rs.80,000.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Owner’s equity = Assets - liabilities

Owner’s equity =  1600,000 - 80,000

Owner’s equity = 1,520,000

(d) The revenues of business entity having expenses of Rs.120,000 and net income of Rs.30,000.

Solution

Revenue = expense + Profit/net income

Revenue = 120,000  + 30,000

Revenue =  150,000

(e) The expenses of a business entity having revenues of Rs.180,000 and net loss of Rs.16,000.

Solution

Expense = Revenue + Loss 

Expense =  180,000 + 16,000

Expense =  196,000

Question # 6:

1994 Regular & Private – BIEK  Compute the missing amount in each of the following independent cases:-

(i)   The assets of Javeed Company total Rs.350,000 and the owner’s equity amounts to

Rs.110,000. What is the amount of liabilities?

Solution

Accounting Equation

Assets = liabilities + owner’s equity

Liabilities = Assets - owner’s equity

Liabilities =  350,000 - 110,000

Liabilities = 240,000

(ii)   The balance sheet of Star Company shows owner’s equity of Rs.80,000 which is equal

to one third amount of total assets. What is the amount of liabilities?

Solution

Compute one third amount of total assets.

80,000x3/1

Assets = 240,000

Accounting Equation

Assets = liabilities + owner’s equity

Liabilities = Assets - owner’s equity

Liabilities =  240,000 - 80,000

Liabilities = 160,000

(iii) Moon Company had assets in the amount of Rs.230,000 on December 31, 1988. Assets

increased to Rs.320,000 by December 31 of 1989. During this same period, liabilities

increased by Rs.85,000. The owner’s equity at December 31, 1988 amounted to

Rs.160,000. Compute the amount of owner’s equity at December 31, 1989.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

1988

Liabilities = Assets - owner’s equity

Liabilities =  230,000 - 160,000

Liabilities = 70,000

Topic Trading

Owner's Equity And Income or Revenue

List Of Expenses

Complete List of Heads Of Accounts & Normal Balance

Accounting Equation

Accounting Equation

Assets = liabilities + owner’s equity

1989

owner’s equity = Assets -  Liabilities

owner’s equity =  320,000 - (70,000 + 85,000)

owner’s equity = 320,000 - 155,000

owner’s equity =  165,000

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