BBA Accounting Equation

 Financial Accounting 

Chapter-1 Accountings Equation

Problem-54: 1. [NU. BBA (Hons) Acc.-2018]

Amir Hossain started a business on 1st January, 2017 investing cash Tk. 42,000 and equipment Tk. 15,000.

During the first month transactions were as follows:

January 2 Paid office rent for the month Tk. 2,500 cash.

3 Purchased a cabinet for Tk. 10,000 on account.

7 Paid Tk. 3,000 cash for advertising bill for the month of January and February.

10 Received Tk. 5,500 cash for service rendered.

15 Purchased office supplies Tk. 600 cash.

18 Withdrew Tk. 1,000 cash for personal use.

20 Service rendered and earned Tk. 12,000, but not yet received.

25 Borrowed Tk. 8,000 from Sonali Bank against Notes Payable.

26 Received cash Tk. 6,500 from Accounts Receivable.

28 Paid cash: Salaries Tk. 3.200; Internet bill Tk. 500; Electricity bill Tk. 1,000

31 Received Tk. 5,300 from Accounts Receivable and the unrealized balance be treated uncollectible.

2. Problem-55: NU. BBA (Hons) Fin.- 2018

Presented below is information related to the sole proprietorship of Douglas William, attorney:

Legal service revenue, 2016 Total expenses, 2016 ----------- 3,40,000 tk

Assets January 1,2016 --------- 2,11,000 tk

Liabilities January 1, 2016 ---------- 85,000 tk

Assets December 31,2016 ------------ 62,000 tk

Liabilities December 31,2016 ---------- 1,68,000 tk

Drawing, 2016 ---------------- ?

Instruction: Prepare the 2016 owner's equity statement for Douglas William's legal practice.

3. Problem 56:

On January 1, 2017 Mr. Alam established a travel Agency. The following transactions were completed during the

Jan. I Invested cash to start agency Tk. 3,00,000. 2 Paid cash for January office rent Tk. 10,000.

3 Purchased office equipment for cash Tk. 25,000. 10 Earned for service rendered Tk. 30,000 (Tk. 20,000 cash received from customers and the balance Tk. 10,000 is billed to customers on account).

18 Withdraw cash for personal use Tk. 6,000. 25 Paid employees salaries Tk. 5,000.

31 Received in cash from customers who have previously been billed on January 10. 31 Received cash from a new customer for services rendered Tk. 10,000.

31 Paid utility bills Tk. 3,000.

4 Problem 57:

Given the accounting equation, answer each of the following question :

INU. BBA (Hons) Acc.- 2017]

(a) The total assets of Fahim Co. are Tk. 5,10,000 and its liabilities are equal to one-third of its total assets. What Is the amount of Fahim Co. owner's equity?

(b) The liabilities of Fariha Company are Tk. 1.50,000 and the owner's equity is Tk. 3,10,000. What is the amount of Fariha co's total assets?

(c) The total assets of Farjana Co. are Tk. 2,00,000 and its owner's equity is Tk. 75,000. What is "the amount of its total liabilities?

5. Problem 58: INU. BBA (Hons) Acc.-2017|

Harun Enterprise completed the following transactions in March 2016: The owner sold his investment for Tk. 1,50,000 and brought in as capital Tk. 1,00,000. 

March 3 Paid house rent Tk. 4,000.

 4 Purchased merchandise for cash Tk. 60,000.

8 Purchased merchandise from Zakir Tk. 1,00,000 on account.

 10 Borrowed Tk: 70,000 from prime bank and signed a notes payable.

16 Sold merchandise for cash Tk. 85,000 (cost Tk. 65,000).

 21 Sold merchandise to Azam Tk. 1,20,000 (cost Tk. 85,000).

30 Payment received on account Tk. 60,000.

31 Paid salary Tk. 1 0,000.

Instruction : Show the effects of each of the above transactions on the accounting equation :

6. Problem-60:

INU. BBA (Hons) Acc.-20161

Mr. Joy started his own delivery service Joy deliveries on May 1, 2015. The following transactions occurred during the month of May :

May 1 Mr. Joy invested Tk. 30,000 cash in the business.

2 Purchased a van for Tk. 10,000 (paid Tk. 2,000 in cash and signed a note payable for the remaining balance.)

3 Paid Tk. 5,000 for office rent for two months,

4 Performed Tk. 2,400 of services on account.

13 Purchased supplies for Tk. 500 on account.

17 Received cash Tk. 750 for service provided on May 4.

21 Made a cash payment of Tk. 4,000 on the note payable.

26 Service revenue earned Tk. 30,000 (Tk. 10,000 in cash and the customers were billed for the balance.)

 28 Received cash Tk. 1,500 as full settlement for service provided on May 4.

30 charged Tk. 1,000.00

31 Paid Tk. 1,000 for employees salaries and one month prepaid rent expired.

Show the effects of each of the above transaction on the accounting equation.

= 15,000 + 53,200 - 27,100 41,100

7. Problem-61: Basic Accounting Equation. NU. BBA (Hons) Mgt.-2016]

Deba started her own consulting firm. Deba consulting on June 1, 2016. The following transaction occurred during month of June :

June-1 Deba invested Tk. 7,000 cahs in the business.

2 Paid Tk. 900 for office rent for the month.

3 Purchased Tk. 600 of supplies on account.

5 Paid Tk. 125 to advertising in the newspaper.

7 Received Tk. 4,000 cash for service performed.

10 Withdraw Tk. 1,000 cash for personal use.

15 Performed Tk. 5,400 of services on account.

17 Paid Tk. 2,500 for employee salaries.

20 Paid for the supplies purchased on account on June, 3.

24 Received a cash payment of Tk. 4,000 for services performed on account on June, 15.

27 Borrowed Tk. 5,000 from the bank on a note payable.

29 Purchase equipment for Tk. 4,200 on account.

30 Paid Tk. 275 for utilities.

Required:

(a) Show the effect of each of the above transactions on the accounting equation.

(b) Prove the accounting equation.

8. Problem-62: Application of Accounting Equation.

Given the accounting equation, answer each of the following questions :

INU. BBA (Hons) Mgt.-201

(a) The liabilities of Nayeem Company are Tk. 1,20,000 and the owner's equity is Tk. 2,32,000. What is th amount of Nayeem Company's total assets?

(b) The total assets of Nayeem Company are Tk. 1,90,000 and its owner's equity, is Tk. 91,000. What is the amount of its total liabilities?

(c) The total assets of Nayeem Company are Tk. 8,00,000 and its liabilities are equal to one-half of it total asset What is the amount of Nayeem Company's owner's equity?

9 Problem-63: Basic Accounting Equation.

INU. BBA (Hons) Mkt.-2016]

On April 1, 2015 Maruf Alam established Alam's Travelling Agency. The following transactions were completed during the month :

April 1 Invested Tk. 60,000 cash to start the agency.

6 Paid Tk. 24,000 cash for two years office rent effective from April 1, 2015. 10 Equipment costing Tk. 20,000 was purchased for Tk. 10,000 cash and notes payable of Tk.10,000.

15 Paid Tk. 1,800 cash for office supplies.

18 Performed services worth Tk. 20,000: Tk. 15,000 cash was received from customers and the balance of Tk. 5,000 is billed to customers on account.

20 Tk. 6,000 payment was made on notes payable. 28 Paid employees salaries Tk. 3,000.

30 One month's rent to be treated as expenses.

30 Supplies costing Tk. 800 were used out of supplies purchased on April, 15. Instructions:

Prepare a tabular analysis of the transactions showing their effects on accounting equation.

10. Problem-65: Basic Accounting Equation. INU. BBA (Hons)-2016]

From the following transactions prepare a Tabular analysis of transactions showing effect on accounting equation: Transactions occured in the books of Mr, Zaman :

(i) Started business bringing in Tk. 1,00,000 Cash, Inventory Tk. 2,00,000, furniture Tk. 1,00,000 and Equipment Tk. 1,00,000.

(ii) Purchase goods on account Tk. 2,00,000.

(iii) Three month's rent Tk. 15,000 were paid in advance. (iv) Sold goods for cash Tk. 1,00,000. (cost Tk. 80,000).

(v) Paid Tk. 1,80,000 in full settlement for transaction no (ii). (vi) Sale of goods on credit Tk. 2,00,000. (cost Tk. 1,50,000).

(vii) Received cash from credit sales for transaction no (vi). less 10% discount. (viii) One month's rent is to be treated as expense.

11. Problem-66: Basic Accounting Equation.

INU. BBA (Hons)-2015)

Mr. Mahmud opened a veterinary business on August 1, 2015. On August 31st, the balance sheet showed cash Tk. 9,000, Accounts receivable Tk. 1,700, Supplies Tk. 600, Office equipment Tk. 6,000, Accounts payable Tk. 3,600 and Mr. Mahmud's capital Tk. 13,700. During September the following transactions occurred:

(1) Paid Tk. 2,900 cash on accounts payable.

(2) Collected Tk. 1,300 of accounts receivables.

(3) Purchased additional office equipment for Tk. 21,000, Paying Tk. 800 in cash and the balance on account. (4) Earned revenue of Tk. 6,300 of which Tk. 2,500 is paid in cash and the balance is due in October.

(5) Withdrew Tk. 600 cash for personal use.

(6) Paid salaries Tk. 700, Rent for September Tk. 900 and Advertising expense Tk. 300.

(7) Incurred utility expenses for the month on account Tk. 170.

(8) Received Tk. 7,000 from Basic Bank money borrowed on a note payable.

Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be follows: Cash+ Accounts Receivable + Supplies+ Office Equipment

Notes payable + Accounts payable + Mr. Mahmud's capital.

12. Problem - 67: Basic Accounting Equation. NU. SBA (Hons)-201

Mr Zahid passing Bechelor Degree in Medical Science and practice under firm's same "Zahid Medical Centre 1, 2015. During the first month, the following transactions occurred

2015

June 1 Capital Investment Cash Tk 150,000, Almirx Table Chair Costing Tk 100,000

1 Paid rent for the month of June and July 2015 Tk. 10,000

2 Purchased medical equipment for cash Tk 50,000

4 Purchased medical supplies on account Tk 10.000

11 Service Revenue Received for cash Tk 60.000

16 Billed patient Tk 40,000 for treatment Service Rendered

21 Cash 20,000 borrowed from a bank on a sos payable,

25 Received Tk 30.000 from the patis billed on June, 2015

30 Received wiephone bill for Tk. 5,000

30 Paid salaries T 10,000 and electricity bill Tk 6.000

30 Medical supplies on hand Tk 2.000

Required:

13. Problem 68: INU. BBS (Pass)-2015] Missing Figures.

Presented below is the accounting equation. Find put the missing amounts:

Vibe p 100 T 30 Agen dens

Assets         = Liabilities + owner's Equity

(1) Tk. 65,000= tk 40,000 + ?

(ii) ? = tk 75,000 + Tk. 20,000

(iii) Tk. 82,000 = ? + Tk. 42,000.

14. Problem 69: Basic Accounting Equation. NU. BBS (Pass)-2015]

Show the effect on accounting equation of the following transactions :

(a) Investment by the owner Tk. 2,50,000.

(b) Purchased machinery for cash Tk. 70,000.

(c) Purchased stationary on credit Tk. 20,000.

(d) Service rendered for cash Tk. 40,000.

15. Problem 70 : Missing Figures.

[জা.বি. বিবিএ (অনার্স) মার্কেটিং-২০১৫)

Presented below is the basic accounting equation. Determine the missing amounts:

Assets    =    Liabilities + Owner's Equity

(a) Tk. 90,000 = Tk. 50,000 +?

(b) ? = Tk. 45,000 Tk. 70,000

(c) Tk. 94,000 = ? + Tk. 65,000

16. Problem-71: Basic Accounting Equation.

[জা.বি. বিবিএ (অনার্স) ব্যব:-২০১৫)

Sumon started his own computer repairing services on July 1, 2015. The following transactions occurred during the month of July:

July 1: Sumon invested Tk. 50,000 cash two PCS worth Tk. 60,000 and equipment's worth Tk, 30,000 in the business

2 Purchased repairing equipment's for Tk. 40,000 and paid Tk. 25,000 cash and signed a note payable for the remainder.

3 Paid Tk. 9,000 for three month's rent in advance

4 Purchased repair supplies for cash Tk. 2,400

5 Performed service on account for Tk. 12,500.

10 Withdrew Tk. 500 for personal use.

17 Received a cash payment of Tk, 5,000 for service provided on July 5.

18 Made a cash payment of Tk. 3,000 or, the notes payable.

20 Received a cash payment of Tk, 20,000 for the service provided.

25 Paid 1,200 for the utilities bills.

31 Paid Tk. 6,000 for employee- salaries.

Instructions: (i) Show the effect of each of the above transactions on the accounting equation.

(ii) Prove the accounting equation.

17. Problem-73 Basic Accounting Equation.

[জা.বি. বিবিএ (অনার্স) মার্কেটিং-২০১৫]

From the following transactions prepare Tabular analysis showing effect on accounting equation :

- (1) Mr. Siddik started business bringing in Tk. 1,50,000 Cash, Inventory Tk. 1,80,000; Furniture Tk. 1,30,000 and Equipment Tk. 1,30,000

(ii) Purchase of goods on account Tk. 2,30,000.

(iii) Rent Tk. 15,000 were paid in advance.

(iv) Sold goods for cash Tk. 1,30,000 (cost Tk. 1,00,000). (v) Paid Tk. 2,18,000 in full settlement for transaction No. (ii).

(vi) Sale of goods on credit Tk. 1,80,000 (cost Tk. 1,60,000).

(v) Received cash from credit sales for transaction No. (vi) less 10% discount.

18. Problem-74: Basic Accounting Equation. NU. BBA (Hons)-2014|

Zaima Zahin opens her own law office on July 1, 2014. During the first month of operations, the following transactions were occurred:

(a) Zaima invested Tk. 1,10,000 cash in the practice.

(b) Paid Tk. 8,000 for July rent for office space.

(c) Purchased office equipment Tk. 30,000 on account.

(d) Provided legal services to Anan Co. for cash Tk. 15,000.

(e) Borrowed from a Bank on a notes payable Tk. 70,000.

(f) Performed legal services to Neela traders on account Tk. 20,000.

(g) Paid monthly expenses: Salaries Tk. 5,000, utilities Tk. 3,000 and telephone Tk. 1,000.

(h) Zaima withdrew cash for personal use Tk. 10,000.

Instruction:

Prepare a tabular analysis of transactions.

19. Problem 75: Basic Accounting Equation.

INU. BBA (Hons) (Acc.)-2014]

The following transactions were experienced by Shafique's washing during October, 2014:

October 1 Shafique invested Tk. 20,000 to start a new car washing business. 4 The business borrowed Tk. 4,000 from bank and note payable was signed.

6 Car wash equipment, costing Tk. 10,000 was purchased for Tk. 5,000 cash and note payable of Tk. 5,000.

8 Supplies costing Tk. 2,000 were purchased on account.

10 Tk. 1,000 payment was made on notes payable.

15 Cash revenue of Tk. 6,000 was collected.

20 Revenue of Tk. 2,000 was earned but not yet collected.

25 Rent expenses of Tk. 1,500 was paid for cash.

25 Wages Tk. 1,000 and salaries Tk. 5,000 were paid for cash.

30 Supplies costing Tk. 1,800 were used out of supplies purchased on October, 8.

Instruction:

Prepare a summary of transactions showing their effects on accounting equation and showing the proof of accounting equation.

20. Problem-76: NU. BBA-2013 BBA (F&B)-2014, 2013

A.H. Talukder owns Talukder Repair Centre on 31 Dec., 2015 with the following ledger balances : Cash Tk. 1,00,000, Supplies Tk. 15,000, Accounts Receivable Tk. 30,000, Tools Tk. 20,000, Motor Vehicles Tk. 80,000, Accounts Payable Tk. 40,000. During the month of January 2014, the following transactions were completed :

1 Paid rent for the month of January 20 Tk. 10,000.

3 Paid cash on Accounts Payable Tk. 25,000

4 Purchased supplies for cash Tk. 5,000.

6 Received cash Tk. 60,000 for service rendered.

10 Purchased tools for cash Tk. 10,000.

15 Billed for service rendered Tk. 30,000

20 Received advanced payment Tk. 20,000

25. Received payment against bill of January 15.

27 Received advanced payment Tk. 20,000 from a client who will be served in next month.

30 Paid cash Tk. 5,000 for the rent of Mr. Talukder residence.

Required: Show the effects of the above transactions over the accounting equation in a tabular summary.