Expanded Accounting Equation: Brief Answer Questions

 

Brief answer questions are the best collection of short answer type questions. Here, questions are set to understand basic concept of the chapter.

  

PROBLEMS AND ANSWERS

Brief Answer Questions

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

BAQ: 1

The following extracted information is given to you EP Furniture:

·         Business started with cash Rs 150,000; stock Rs 80,000 and equipment Rs 40,000.

Required: Show in accounting equation

[Answer: Assets = Rs 270,000; Capital = Rs 270,000; Liabilities = Nil]

BAQ: 2

BK Traders has following information:

a.     Business started with cash Rs 150,000 and furniture Rs 30,000.

b.    Business goods purchased from SK Suppliers Rs 70,000.

Required: Expanded accounting equation

[Answer: Assets = Rs 250,000; Capital = Rs 180,000; Liabilities = Rs 70,000]

BAQ: 3

The following extracted information is given to you Usha Traders:

a.     Business started with cash Rs 200,000.

b.    Goods purchase from AK Traders worth Rs 80,000 and paid Rs 30,000 partially. 

Required: Expanded accounting equation

[Answer: Assets = Rs 250,000; Capital = Rs 200,000; Liabilities = Rs 50,000]

BAQ: 4

The following extracted information is given to you by Ms Manju:

a.     Business started with cash Rs 250,000 and stock Rs 80,000.

b.    Goods sold to Ms Rajani costing Rs 50,000 for Rs 60,000 on account.

Required: Expanded accounting equation

[Answer: Assets = Rs 340,000; Capital = Rs 340,000; Liabilities = Nil]

BAQ: 5

EP Impex has following data for you:

a.     Business started with cash Rs 180,000 and furniture Rs 20,000.

b.    Goods purchase in cash Rs 70,000.

c.     Goods sold in cash Rs 40,000.

d.    Rent paid Rs 12,000.

Required: Expanded accounting equation

[Answer: Assets = Rs 188,000; Capital = Rs 188,000; Liabilities = Nil]

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Accounting Equation	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger Account	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance and Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)	http://tiny.cc/jlersz
Accounting Process	http://tiny.cc/mlersz
Accounting for Long Lived Assets	http://tiny.cc/plersz
Analysis of Financial Statement	http://tiny.cc/slersz

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BAQ: 6

EP Impex has following data for you:

1.    Business started with cash Rs 180,000 and furniture Rs 20,000.

2.    Goods purchase in cash Rs 70,000.

3.    Goods sold in cash Rs 40,000.

4.    Rent paid Rs 12,000.

Required: Expanded accounting equation

[Answer: Assets = Rs 188,000; Capital = Rs 188,000; Liabilities = Nil]

BAQ: 7

GK Company has following information:

a.     Business started with cash Rs 400,000 and stock Rs 200,000.

b.    Furniture purchase from SL Furniture Rs 25,000.

c.     Goods sold costing Rs 90,000 for Rs 120,000 to Raj.

d.    Salary payable Rs 20,000.

Required: Expanded accounting equation

[Answer: Assets = Rs 655,000; Capital = Rs 610,000; Liabilities = Rs 45,000]

BAQ: 8

Ranjana Beauty Care (P) Ltd is a beauty parlour; it has following information:

1.    Owner investment Rs 200,000 and converted into 2,000 common stocks @ Rs 100.

2.    Cosmetics purchase 52,000.

3.    Office equipment purchased on account Rs 65,400.

4.    Service revenue earned cash Rs 16,500.

Required: Expanded accounting equation

[Answer: Assets = 164,500; 52,000; 64,500;

SHE = 200,000; RE = 16,500; Liabilities = 65,400]

BAQ: 9

RK Plumber provides plumbing service; it has following information:

a.     Investment Rs 35,000 to commence the business.

b.    Equipment purchased in cash Rs 15,300.

c.     Equipment purchased on account Rs 22,400.

d.    Service revenue an account Rs 16,500.

Required: Expanded accounting equation

[Answer: Assets = 19,700; 37,700; 16,500;

Owner’s equity = 51,500; Liabilities = 22,400]

BAQ: 10

Rajesh and Rajendra registered RR Custom Agents with necessary documents to provide custom clearance service; it has following information:

a.     They invested Rs 65,000 to commence business.

b.    Office equipment purchased on account Rs 45,750.

c.     Paid for internet for Rs 8,700.

d.    Service revenue an account Rs 22,500.

Required: Expanded accounting equation

[Answer: Assets = 56,300; 45,750; 22,500;

Owner’s equity = 78,800; Liabilities = 45,750]

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