Accountancy Worksheet 2020-21

Bright Riders School Abu Dhabi

CLASS 11 - ACCOUNTANCY
Accounting Equation
Time Allowed: 45 minutes Maximum Marks: 50

1. In all circumstances Assets will be always equal to _____ + ______ [1]

a) Capital, Cash b) Capital, Liabilities

c) Cash, Liabilities d) All of these

2. Goods costing Rs. 15,000 were sold for cash at a profit of 20%. By what amount stock account [1]
will decrease:

a) Rs.20,500 b) Rs.15,000

c) Rs.25,000 d) Rs.1,500
3. The company pays its creditors by cheque. What is the effect on assets and liabilities [1]

a) Increase Bank and Increase Capital b) Reduce Bank and Reduce Liability

c) Increase Bank and Reduce Capital d) Reduce Bank and Increase Capital
4. A business had net assets at 1 January and 31December 2012 of Rs.75,600 and Rs.73,800 [1]
respectively. During the year, the proprietor introduced additional capital of Rs. 17700 and
withdrew cash and goods to the value of Rs.16300.What profit or loss was made by the
business in 2012

a) Rs.3000 Profit b) Rs.3200 Profit

c) Rs.3200 Loss d) Rs.3000 Loss

5. Goods costing Rs. 20,000 were sold for cash at a profit of 25%. By what amount stock account [1]
will decrease

a) Rs.25,000 b) Rs.15,000

c) Rs.20,000 d) Rs.20,500
6. What shall be the amount of Capital if Cash is Rs 5,000; Furniture Rs 12,000; Stock Rs 30,000 [1]
and Creditors Rs 6,000?

a) None of these b) Rs 53,000

c) Rs 47,000 d) Rs 41,000
7. If the business's owner withdraws cash for his/her personal use what will be the effect on [1]
capital?

a) Increase in capital b) Remain the same

c) No effect on capital d) Decrease in capital

8. Capital at the end Rs.45,500 and capital in the beginning Rs.50,000. Difference of opening and [1]
closing capital is ___

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 a) Rs.4500 loss b) Rs. 4500 additional capital

c) Rs.4500 revenue d) Rs. 4500 profit

9. Fresh capital introduction will increase [1]

a) Assets and Liabilities b) Liabilities and equity

c) Assets and Capital d) Capital and Liabilities

10. The decrease in one liability may lead to: [1]

a) increase in another liability b) the decrease in an asset

c) none of these d) either decrease in asset or increase

in liability
11. If assets = Rs. 60000 and liabilities = Rs.25000, What is the capital in the business? [1]

a) Rs.95000 b) Rs.35000

c) Rs.25000 d) Rs.85000
12. The owner withdraws business assets for personal use. [1]

a) Assets: Decrease, Liabilities: No b) Assets: No .Liabilities: Increase,

Effect, Equity: Decrease Equity: No Effect

c) Assets: Decrease, Liabilities: d) None of these

Decrease, Equity: Decrease
13. Capital increases if ______ increases [1]

a) Drawings b) Interest on capital

c) Revenue d) Expenses
14. The Basic accounting equation is [1]

a) Assets = Expenses + Capital b) Asset = Expense + Income

c) Assets= Cash + Capital d) Assets = Capital + Liabilities

15. Payment of expenses will ______ the assets [1]

a) Increase b) Apportion

c) Reduce d) No Effect
16. Collection of account receivable will [1]

a) Increase assets and decrease assets b) Decrease assets and Increase assets

c) Decrease assets only d) Increase assets and decrease

liabilities
17. Goods costing Rs.15,000 were sold for cash at a profit of 20%. By what amount cash increase [1]

a) Rs.13,000 b) Rs.12,000

c) Rs.18,000 d) Rs.15,000
18. Accounting equation is based on [1]

a) Single concept b) Both

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 c) Dual concept d) None
19. Payment to creditors in cash will affect [1]

a) Only liability side of the equation b) Only assets side of the equation

c) Asset and Liability both d) Only capital side of the equation

20. Calculate the amount of cash if: other assets( Except Cash) = Rs.10,000 liabilities= Rs.10,000 [1]
Total Capital= Rs.5000

a) Rs.3000 b) Rs.1000

c) Rs.5000 d) Rs.10000
21. If Cash= Rs.1000; inventories= Rs.4000 Debtors= Rs.5000; fixed assets=? Capital + Liabilities= [1]
Rs.18000. Find out the Amount of fixed assets?

a) Rs.15000 b) Rs.20000

c) Rs.8000 d) Rs.10000
22. The accounting equation should remain in balance because every transaction affects how [1]
many accounts?

a) Two or more b) Only One

c) Only two d) None of these

23. If the total liabilities of a business decrease by Rs.5000 what will be the effect on total asset? [1]
(assuming the amount of capital remain same)

a) Increase by Rs.5000 b) Increase by Rs.10000

c) Decrease by Rs.5000 d) Remain constant

24. Which of the following is correct? [1]

a) Assets = Rs 8,20,000, Liabilities = Rs b) Assets = Rs 7,85,000, Liabilities = Rs

2,80,000, Capital = Rs 11,00,000 1,25,000, Capital = Rs 6,60,000

c) Assets = Rs 5,42,000, Liabilities = Rs d) Assets = Rs 9,55,000, Liabilities = Rs

6,54,000, Capital = Rs 1,12,000 1,15,000, Capital = Rs 8,20,000
25. Capital of a business decreases if there is an increase in [1]

a) Income b) Drawings

c) Fresh Capital d) Gains

26. Create an accounting equation on the basis of the following transactions: [3]
i. Started business with cash Rs 8,00,000 and goods Rs 2,00,000
ii. Cash deposited in Bank Rs 5,00,000
iii. Purchased machinery from Arjun Rs 10,000
iv. Bought goods for cash Rs 80,000
v. Paid to Arjun by cash Rs 10,000
vi. Salary paid by cheque Rs 20,000
27. Describe the fundamental accounting equation. How are revenue and expense accounts [3]
related to it?

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28. How will you deal with the following items in the accounting equation: [3]
i. Interest due but not received
ii. Rent received in advance
iii. Insurance premium paid in advance
iv. Salaries due but not paid
29. Analyse the effect of each transaction and prove that the accounting equation(A = L + C) [8]
always remains balanced.
i. Introduced Rs 4,00,000 as cash and Rs 25,000 by stock.
ii. Purchased plant for Rs 1,50,000 by paying Rs 7,500 in cash and balance at a later date.
iii. Deposited Rs 3,00,000 into the bank.
iv. Purchased office furniture for Rs 50,000 and made payment by cheque.
v. Purchased goods worth Rs 40,000 for cash and for Rs 17,500 on credit.
vi. Goods amounting to Rs 22,500 was sold for Rs 30,000 on cash basis.
vii. Goods costing to 1 40,000 was sold for 1 62,500 on credit basis.
viii. Cheque issued to the supplier of goods worth Rs 17,500.
ix. Cheque received from customer amounting to Rs 37,500.
x. Withdrawn by owner for personal use Rs 12,500.
30. Use accounting equation to show the effect of the following transactions of M /s Royal Traders. [8]

Amount
Sl.no. Particulars
(Rs)

(i) Started business with cash 1,20,000

(ii) Purchased goods for cash 10,000

(iii) Rent received 5,000

(iv) Salary outstanding 2,000

(v) Prepaid insurance 1,000

(vi) Received interest 700

(vii) Sold goods for cash (costing Rs 5,000) 7,000

(viii) Goods destroyed by fire 500

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