JAIIB · AFM · Chapter 12

Balance Sheet Equation

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

Owner brings ₹2,00,000 cash — Effect on Assets / Effect on Liabilities / Effect on Capital?

A

Effect on Assets: + ₹2,00,000 (Cash); Effect on Liabilities: No change; Effect on Capital: + ₹2,00,000

Q

Term loan of ₹3,50,000 from bank — Effect on Assets / Effect on Liabilities / Effect on Capital?

A

Effect on Assets: + ₹3,50,000 (Cash); Effect on Liabilities: + ₹3,50,000 (Loan); Effect on Capital: No change

Q

Purchased goods on credit ₹80,000 — Effect on Assets / Effect on Liabilities / Effect on Capital?

A

Effect on Assets: + ₹80,000 (Stock); Effect on Liabilities: + ₹80,000 (Creditors); Effect on Capital: No change

Q

Sold goods costing ₹50,000 for ₹70,000 cash — Effect on Assets / Effect on Liabilities / Effect on Capital?

A

Effect on Assets: Net + ₹20,000 (Cash up ₹70k, Stock down ₹50k); Effect on Liabilities: No change; Effect on Capital: + ₹20,000 (Profit)

Q

Paid salary ₹25,000 — Effect on Assets / Effect on Liabilities / Effect on Capital?

A

Effect on Assets: − ₹25,000 (Cash); Effect on Liabilities: No change; Effect on Capital: − ₹25,000 (Expense)

Q

Owner withdraws ₹40,000 (Drawings) — Effect on Assets / Effect on Liabilities / Effect on Capital?

A

Effect on Assets: − ₹40,000 (Cash); Effect on Liabilities: No change; Effect on Capital: − ₹40,000

Q

To Opening Stock — Amount (₹) / Credit Side (Revenue / Stock-out) / Amount (₹)?

A

Amount (₹): xxx; Credit Side (Revenue / Stock-out): By Sales; Amount (₹): xxx

Q

To Net Purchases (Purchases − Returns) — Amount (₹) / Credit Side (Revenue / Stock-out) / Amount (₹)?

A

Amount (₹): xxx; Credit Side (Revenue / Stock-out): Less: Sales Returns; Amount (₹): (xxx)

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