BBA VISION Coaching

Principles of Accounting
Chapter: Accounting Equation
RULE-01: MATHEMATICAL EQUATION METHOD
(Missing amounts)

Problem – 01 [NU -2011; Dept. of Accounting-2014; Dept. of Markating-2016]

Presented below are the components in Munims Company's Income statement. Determine the amounts:
Sales Cost of goods sold Gross profit Operating Net Income
expenses
i Tk. 75,000 ? Tk. 28,000 ? Tk. 10,800
ii Tk. 1,08,000 Tk. 70,000 ? ? Tk. 29,500
iii ? Tk. 71,900 Tk. 99,600 Tk. 39,500 ?

Solution
Calculation of missing amounts.
(i) We Know that,
Cost of goods sold = Sales – Gross profit
= 75,000 – 28,000 = 47,000
Operating Exp. = Gross profit - Net Income
= 28,000 – 10,800 = 17,200
(ii) Gross profit = Sales – Cost of goods sold
= 1,08,000 – 70,000 = Tk. 38,000
Operating Exp. = Gross profit – Net Income
= 38,000 – 29,500 = Tk. 8,500
(iii) Sales = Cost of goods sold + Gross Profit
= 71,900 + 99,600 = Tk. 1,71,500
Net Income = Gross profit – Operating Expense
= 99,600 – 39,500 = Tk. 60,100
Complete a table
Sales Cost of goods sold Gross profit Operating Net Income
expenses
i Tk. 75,000 Tk. 47,000 Tk. 28,000 Tk. 17,200 Tk. 10,800
ii Tk. 1,08,000 Tk. 70,000 Tk. 38,000 Tk. 8,500 Tk. 29,500
iii TK. 1,71,500 Tk. 71,900 Tk. 99,600 Tk. 39,500 Tk. 60,100

Problem – 02 [N.U- BBA (Hons.) -2012]

Fahim Company had the following assets and liabilities on the dates indicated:
December 31: Total Assets Total Liabilities
Taka Taka
2009 4,00,000 2,50,000
2010 4,60,000 3,00,000
2011 5,90,000 4,00,000
Fahim began business on January 1, 2009, with an investment of Tk. 1,00,000.
Instructions:
 From an analysis of the change in owner's equity for each year, compute the net income (or loss) for:
i. 2009, assuming Fahim's drawings were Tk. 15,000 for the year.
ii. 2010, assuming Fahim made an additional investment of Tk. 50,000 and had no drawings in 20
iii. 2011, assuming Fahim made an additional investment of Tk. 15,000 and had drawings of Tk. 2,500 each
month during 2011.

Solution
(i) For year 2009:
We Know, Assets = Liabilities + OE
 Assets = liabilities + (Beg. investment + Additional investment + Net Income – Drawing)
 4,00,000 = 2,50,000 + (1,00,000 + 0 + Net income – 15,000)
 4,00,000 = 2,50,000 + 85,000 + Net income
 4,00,000 – 3,35,000 = net income
 Net income = 65,000 (Ans.)
(ii) For the year 2010:
We Know, Assets = liabilities + OE
 Assets = liabilities + (Beg. Investment + Additional investment + Net Income – Drawing)
 4,60,000 = 3,00,000 + 1,50,000 – 50,000 + Net income = 4,00,000 – 2,50,000
 4,60,000 = 4,00,000 + Net income = 1,50,000
 4,00,000 + Net income = 4,60,000
 Net Profit = 4,60,000 – 4,00,000
 Net Profit = 60,000
Note: Beg. investment

(iii) For the year 2011:

We know, Assets = liabilities + OE
 Assets = liabilities + (Beg. investment + Additional Investment + Net income – Drawing)
 5,90,000 = 4,00,000 + (1,60,000 + 15,000 + Net income – (2,500 × 12)
 5,90,000 = 4,00,000 + 1,75,000 + Net income – 30,000 Note: Beg investment
 5,90,000 = 5,45,000 + Net income = 4,60,000 – 3,00,000
 Net income =5,90,000 – 5,45,000 = 1,60,000
 Net income = 45,000 (Ans.)
Problem – 03 (Missing Amounts) [N.U- BBA (Hons.) -2012]
Presented below is information related to the sole proprietorship of Kevin Johnson, attorney
Taka
Legal service revenue –2012 3,50,000
Total expenses –2012 2,11,000
Assets. January 1 –2012 85,000
Liabilities. January 1 –2012 62,000
Assets, December 31 –2012 1,68,000
Liabilities, December 31 –2012 85,000
Drawings –2012 ?
Instructions:
Prepare the 2011 Owner's equity contain the following balances on July 31, 2011.

Solution
In the book of Kevin Johnson attorney
Owner’s equity statement
For the year ended 31th Dec, 2012
Particulars Amount (Tk.)
Opening Capital ................(85,000 – 62,000) 23,000
(+) Net income ..............(3,50,000 – 2,11,000) 1,39,000
1,62,000
( – )Drawings.......... (1,62,000 – 83,000) (B/F) (79,000)
Ending Capital .................(1,68,000 – 85,000) 83,000
Calculations:
(i) Beginning capital = Assets (1st Jan.) – Liabilities (1st Jan.) = 85,000 – 62,000 = 23,000
(ii) Ending Capital = Assets (31st Dec.) – Liabilities (31st Dec.) = 1,68,000 – 85,000 = 83,000
(iii) Net income = Service Revenue – Total Expense = 3,50,000 – 2,11,000 = 1,39,000
(iv) Drawing = Beg. Capital + Net income – Ending capital = 23,000 + 1,39,000 – 83,000 = 79,000

Problem – 04 (Missing Amounts) [N.U- BBA (Hons.) Dept. of Finance & Banking-2014]
Financial statement of two companies are as follows:
Particulars A Company B Company
January 1, 2014:
Assets 20,000 21,000
Liabilities 5,000 (d)
Owner's equity (a) 6,000
December 31, 2014 :
Assets (b) 25,000
Liabilities 15,500 7,500
Owner's equity 30,000 (e)
Owner's equity changes during the year :
Additional investment (c) 8,000
Drawings 2,500 (f)
Total Revenue 35,000 42,000
Total expenses 30,000 38,000
Total 2,00,000
Instruction:
Determine the missing amounts.

Solution
For-A: Company
(a) Calculation of Beginning Owners Equity: Assets = Liabilities + Owner's Equity
 20,000 = 5,000 + Owner's Equity
 20,000 – 5,000 = Owner's Equity
 Owner's Equity = 15,000 (Ans.)
(b) Calculation of Ending Assets: Assets = Liabilities + Owner's Equity
 Assets = 15,500 + 30,000
 Assets = 45,500
(c) Calculation of additional Investment:
Additional Investment = Ending O/E + Drawing – Opening O/E - Revenue + Expense
 Additional Investment = 30,000 + 2,500 – 15,000 – 35,000 + 30,000
 Additional Investment = 12,500 (Ans.)
For-B: Company
(d) Calculation of Beginning Liabilities: Assets = Liabilities + Owner's Equity
 21,000 = Liabilities + 6,000
 Liabilities = 21,000 – 6,000
 Liabilities = 15,000
(e) Calculation of Ending Owner's Equity: Assets = Liabilities + Owner's Equity
 25,000 = 7,500 + Owner's Equity
 25,000 - 7,500 = Owner's Equity
 Owner's Equity = 17,500 (Ans.)
(f) Calculation of Drawing:
Opening O/E + Additional Investment – Drawing + Revenue – Expenses = Ending Owner's Equity.
 6,000 + 8,000 – Drawing + 42,000 – 38,000 = 17,500
 18,000 – Drawing = 17,500
 18,000 – 17,500 = Drawing
 Drawing = 500

Problem – 05 (Missing Amounts) [N.U- BBA (Hons.) - 2014]

Presented below is information related to the sole proprietorship of Mery Anderson attorney.
Taka
Legal service revenue 2013 4,00,000
Total expenses 2013 2,10,000
Assets, January 1,2013 80,000
Liabilities, January 1,2013 60,000
Assets, December 31,2013 1,60,000
Liabilities, December 31,2013 85,000
Drawing, 2013 ?
Instructions:
Prepare the 2013 Owner's equity contain the following balances on July 31, 2014.

Solution
In the book of Mery Anderson attorney
Owner’s equity statement
For the year ended 31st Dec, 2012
Particulars Amount (Tk.)
Opening Capital 20,000
(+) Net income 1,90,000
2,10,000
(–) Drawings ................... (B/F) 1,35,000
Ending Capital ...............(W - ii) 75,000
Calculations:
(i) Beginning capital = Assets (1st Jan.) – Liabilities (1st Jan.) = 80,000 – 60,000 = 20,000
(ii) Ending Capital = Assets (31st Dec.) – Liabilities (31st Dec.) = 1,60,000 – 85,000 = 75,000
(iii) Net income = Service Revenue – Total Expense = 4,00,000 – 2,10,000 = 1,90,000
(iv) Drawing = Beginning Capital + Net income – Ending capital = 20,000 + 1,90,000 – 75,000 = 1,35,000

Problem – 06 (Missing Amounts) [DU-BBA - 2016]

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

Solution
Calculation of missing amounts:
(a) Owner's Equity = Assets – Liabilities
= Tk. 90,000 – Tk. 50,000 = Tk. 40,000
(b) Assets = Liabilities + Owner's Equity
= Tk. 45,000 + 70,000 = Tk. 1,15,000
(c) Liabilities = Assets – Owner's Equity
= TK. 94,000 – Tk. 65,000 = Tk. 29,000.
Complete a table
Assets = Liabilities + Owner's equity
(a) Tk. 90,000 = Tk. 50,000 + Tk. 40,000
(b) Tk. 1,15,000 = Tk. 45,000 + Tk. 70,000
(c) Tk. 94,000 = Tk. 29,000 + Tk. 65,000

RULE-02: TABULAR EQUATION METHOD

Basis-1 Service concern
Basis-2 Trade business concern
Basis-3 Public Ltd: Concern

BASIS-01: SERVICE CONCERN

Problem – 07 [Service concern] [N.U- BBA (Hons.) -2002]

On January 1, 2009, Abdullah established Bengal Travel Agency. The following transactions were completed during the
months.
January:
1 Invested cash to start the agency Tk. 3,00,000.
2 Paid cash for January office rent Tk. 10,000.
5 Purchased office equipment cash for TK 25,000.
10 Incurred advertising costs in the Daily Times On Account Tk. 10,000.
14 Purchased office supplies for cash Tk. 5,000.
18 Earned for services rendered Tk. 30,000. (TK. 20,000 cash received from customers and the balance Tk. 10,000
is billed to customers on account.)
20 Withdrew cash for personal use Tk. 6,000.
23 Paid the Daily Times amount due on January 10.
25 Purchased additional office supplies on account Tk. 4,000.
31 Paid Employees’ salaries Tk. 5,000.
31 Received in cash from customers who have previously been billed on January 18.
31 Received in Cash from a new customer for services rendered Tk. 10,000.
31 Paid telephone, gas and electricity bills Tk. 3,000.
Required:
i. Show summary of transactions preparing tabular analysis;
ii. Prove accounting equation.

Solution
Req. (i):
Bengal Travel Agency
Equation (Tabular Method)
For the month of January, 2019
Assets = Liabilities + Owner’s
Equity
Date Cash A/R Equipmen Supplies = A/P Capital Remarks
t
1 3,00,000 = 3,00,000
Bal 3,00,000 = 3,00,000
… (10,000) (10,000) Rent Exp.
2
Bal 2,90,000 = 2,90,000
… (25,000) 25,000
5
Bal 2,65,000 25,000 = 2,90,000
… 10,000 (10,000) Advertising
10 Exp.
Bal 2,65,000 25,000 = 10,000 2,80,000
… (5,000) 5,000
14
Bal 2,60,000 25,000 5,000 = 10,000 2,80,000
… 20,000 10,000 30,000 Service Revenue
18
Bal 2,80,000 10,000 25,000 5,000 = 10,000 3,10,000
… (6,000) (6,000) Drawings
20
Bal 2,74,000 10,000 25,000 5,000 = 10,000 3,04,000
… (10,000) (10,000)
23
Bal 2,64,000 10,000 25,000 5,000 = … 3,04,000
… 4,000 4,000
25
Bal 2,64,000 10,000 25,000 9,000 = 4,000 3,04,000
… (5,000) (5,000) Salaries
31 Expense
Bal 2,59,000 10,000 25,000 9,000 = 4,000 2,99,000
… 10,000 (10,000)
31
Bal 2,69,000 … 25,000 9,000 = 4,000 2,99,000
… 10,000 10,000 Service Revenue
31
Bal 2,79,000 … 25,000 9,000 = 4,000 3,09,000 Tel, Gas & other
… (3,000) (3,000) Expense
31
Bal 2,76,000 Nil 25,000 9,000 = 4,000 3,06,000
…
Tota 3,10,000 = 3,10,000
l
Req. (ii): Prove the Accounting equation: We know,
Accounting Equation,
A = L + OE
 Assets (A) = Liabilities + Owner’s Equity
 Cash + A/R + Equipment + Supplies = A/P + Capital
 2,76,000 + Nil + 25,000 + 9,000 = 4,000 + 3,06,000
 3,10,000 = 3,10,000 (Proved)

Problem – 08 [Service concern] [N.U- BBA (Hons.) -2003]

Nandini graduated from college in June, 2009 with a degree in architecture and during July, she completed these
transactions:
July
1 Began an architectural practice by investing cash Tk. 32,000.
2 Rented the furnished office and equipment of an architect who was retired due to illness and paid the rent for
two months in advance Tk. 5,000.
5 Paid the premium on a liability insurance policy giving one year's protection Tk. 2,400.
7 Purchased drafting supplies on credit Tk. 1,000.
8 Completed a set of plans for a contractor and immediately collected Tk. 2,500 for the job.
15 Completed and delivered a set of plans to Zareen Construction Company on credit Tk. 3,000.
17 Paid for the drafting supplies purchased on July 7.
22 Completed architectural work for Oriental Realty on credit Tk. 1,500.
25 Received Tk. 2,500 from Zareen Construction Company for the plans delivered on July 15.
27 Nandini withdrew Tk. 2,000 cash from the business to pay personal expenses.
29 Purchased additional drafting supplies on credit Tk. 450.
31 Paid blue printing expense incurred during the month Tk. 500.
31 Paid the July utility bills Tk. 400.
31 Recognized that one month's rent had expired and had become an-expense.
31 Recognized that one month's prepaid insurance had expired and had become an expense.
31 Took an inventory of drafting supplies and determined that supplies costing Tk. 1,200 had been used and had
become an expense.
Required:
(a) Show the effects of the above transactions on the accounting equation using a tabular form.
(b) Show general journal entries for the above transactions (Explanations are not needed).

Solution
Req.-(a)
In the book of Nandini
Equation (Tabular Method)
For the month of June, 2019
Assets = Liabilities + O/E
Date Cash A/R Supplies Prepaid Prepaid = A/P Capital Remarks
Rent Insurance
Jul 01 32,000 = 32,000 Investment
Bal… 32,000 = 32,000
02 (5,000) 5,000
Bal… 27,000 5,000 = 32,000
05 (2,400) 2,400
Bal… 24,600 5,000 2,400 = 32,000
07 1,000 1,000
Bal… 24,600 1,000 5,000 2,400 = 1,000 32,000
08 2,500 2,500 Service Revenue
Bal… 27,100 1,000 5,000 2,400 = 1,000 34,500
15 3,000 3,000 Service Revenue
Bal… 27,100 3,000 1,000 5,000 2,400 = 1,000 37,500
17 (1,000) (1,000)
Bal… 26,100 3,000 1,000 5,000 2,400 = …… 37,500
22 1,500 1,500 Service Revenue
Bal… 26,100 4,500 1,000 5,000 2,400 = 39,000
25 2,500 (2,500)
Bal… 28,600 2,000 1,000 5,000 2,400 = 39,000
27 (2,000) (2,000) Withdraw
Bal… 26,600 2,000 1,000 5,000 2,400 = 37,000
29 450 450
Bal… 26,600 2,000 1,450 5,000 2,400 = 450 37,000
31 (500) (500) Blueprint Expense
Bal… 26,100 2,000 1,450 5,000 2,400 = 450 36,500
31 (400) (400) Utilities Expense
Bal… 25,700 2,000 1,450 5,000 2,400 = 450 36,100
31 (2,500) (2,500) Rent Expense
Bal… 25,700 2,000 1,450 2,500 2,400 = 450 33,600
31 (200) (200) Insurance Expense
Bal… 25,700 2,000 1,450 2,500 2,200 = 450 33,400
 31 (1,200) (1,200) Supplies Expense
Bal… 25,700 2,000 250 2,500 2,200 = 450 32,200
Total 32,650 = 32,650
Req.-(b):
In the book of Nandini
Journal Entries
Date Accounts Title and Explanation Ref. Debit (Tk.) Credit (Tk.)
2009 Cash 32,000
July – 1 Capital 32,00
”2 Prepaid Rent 5,000
Cash 5,000
”5 Prepaid Insurance 2,400
Cash 2,400
”7 Supplies 1,000
Account Payable 1,000
”8 Cash 2,500
Service Revenues 2,500
” 15 Account Receivable 3,000
Service Revenues 3,000
” 17 Accounts payable 1,000
Cash 1,000
” 22 Accounts Receivable 1,500
Service Revenues 1,500
” 25 Cash 2,500
Accounts Receivable 2,500
” 27 Withdrew 2,000
Cash 2,000
” 29 Supplies 450
Accounts Payable 450
” 31 Blue printing Exp. 500
400
Utilities Exp.
Rent Exp. 2,500
Cash 3,400
” 31 200
Insurance Exp.
200
Prepaid Insurance
” 31 1,200
Supplies Exp.
1,200
Supplies

Problem – 09 Service Concern [N.U-BBA (Hons.) -2006]

Mr. Moon started his own delivery service on January 1, 2006 The following transactions occurred during the month of
January:
January
1 Mr. Moon invested Tk. 20,000 cash in the business.
2 Purchased a van for deliveries for tk. 10,000. Mr. Moon paid Tk. 2,000 in cash and signed a note payable for
the remaining balance.
5 Paid Tk. 500 for office rent for the month.
7 Performed Tk. 2,400 of services in account.
9 Withdrawn Tk. 200 in cash for personal use.
13 Purchased supplies for Tk. 500 on account.
17 Received cash Tk. 750 for services provided on January 7.
26 Made cash payment of Tk. 55,00 in the note payable
28 Received cash Tk. 1,600 as full settlement of remaining money for service provided on January 7.
31 Paid Tk. 1,000 for employees' salaries.
Show the effects of each of the above transactions on the accounting equation.

Solution
 In the book of Moon Delivery Service
Equation (Tabular Method)
For the month of January, 2006
Assets = Liabilities + O/E
Date Cash A/R Delivery Supplies = Notes A/P Capital Remarks
Van Payable
Jan. 1 20,000 = 20,000 Investment
”2 (2,000) 10,000 = 8,000
”5 (500) = (500) Rent Expense
”7 2,400 = 2,400 Service Revenue
”9 (200) = (200) Withdrew
” 13 500 = 500
” 17 750 (750) =
” 26 (5,500) = (5,500)
” 28 1,600 (1,650) = (50) Discount Expense
” 31 (1,000) = (1,000) Salaries Expense
Bal… 13,150 0 10,000 500 = 2,500 500 20,650
Total 23,650 = 23,650

Problem – 10 Service Concern [N.U- BBA (Hons.)-2009]

Susmita Traders his own delivery service. The following transactions occurred during the month of June:
1 Susmita invested Tk. 10,000 cash in her business.
2 Purchased a delivery van for Tk. 10,000. Susmita paid Tk. 3,000 in cash and signed a note payable for the
remainder.
3 Paid Tk. 400 for office rent.
4 Performed Tk. 2,400 of service on account.
5 Withdrew Tk. 300 cash for personal use.
6 Purchase supplies for Tk. 150 on account.
7 Receive cash payment of Tk. 750 for services provided on June 04.
8 Purchased gasoline for Tk. 100 on account.
9 Receive a cash payment of Tk. 1,500 for services provided.
10 Made a cash payment of Tk. 500 on the note payable.
11 Paid Tk. 250 for utilities.
12 Paid for the gasoline purchased on account on June 08.
13 Paid Tk. 500 for employees' salaries.
Required:
You are required to show the effects of the above transactions on accounting equation and prove the equation.

Solution
In the book of Susmita Delivery Service
Equation (Tabular Method)
For the month of June, 2007
Assets = Liabilities + O/E
Date Cash A/R Supplies Delivery = Notes A/P Capital Remarks
Van Payable
Jun. 1 10,000 = 10,000 Investment
”2 (3,000) 10,000 = 7,000
”3 (400) = (400) Rent Expense
”4 2,400 = 2,400 Service Revenue
”5 (300) = (300) Drawing
”6 150 = 150
”7 750 (750) =
”8 = 100 (100) Fuel Expense
”9 1,500 = 1,500 Service Revenue
” 10 (500) = (500)
” 11 (250) = (250) Utilities Expense
 ” 12 (100) = (100)
” 13 (500) = (500) Salaries Expense
Bal… 7,200 1,650 150 10,000 = 6,500 150 12,350
Total 19,000 = 19,000

Problem – 11 [DU -BBA - 2016]

Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet
showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600,
and Maria Gonzalez, Capital $13,700. During September the following transactions occurred.
1. Paid $2,900 cash on accounts payable.
2. Collected $1,300 of accounts receivables.
3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4. Earned revenue of $8,000, of which $2,500 is paid in cash and the balance is due in October.
5. Withdrew $1,000 cash for personal use.
6. Paid salaries $1,700, rent for September $900, and advertising expense $300.
7. Incurred utility expenses for month on account $170.
8. Received $10,000 from Capital Bank - money borrowed on a note payable.
Instructions:
(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column
headings should be as follows.
(b) Prepare an income statement for September, an owner's equity statement for September, and a balance sheet at
September 30.

Solution
Req. (a): -
Maria Gonzalez
Nashville, Summary of Transaction Analysis (Tabular Method)
For the month ended September 30, …………….
Trans. Assets = Liabilities + O/E
No. Cash A/R Supplies Office = Notes A/P Maria
Explanations
Equip. Payable Gonzalez
Capital
Bal. b/d $9,000 $1,700 $600 $6,000 = $3,600 $13,700 Investment
1. (2,900) = (2,900)
Bal… 6,100 1,700 600 6,000 = 700 13,700
2. 1,300 (1,300)
Bal… 7,400 400 600 6,000 = 700 13,700
3. (800) 2,100 1,300
Bal… 6,600 400 600 8,100 = 2,000 13,700
4. 2,500 5,500 8,000 Service Revenue
Bal… 9,100 5,900 600 8,100 = 2,000 21,700
5. (1,000) (1,000) Drawings
Bal… 8,100 5,900 600 8,100 = 2,000 20,700
6. (1,700) (1,700) Salaries Expense
(900) (900) Rent Expense
(300) (300) Advertising Expense
Bal… 5,200 5,900 600 8,100 = 2,000 17,800
7. 170 (170) Utilities Expense
Bal… 5,200 5,900 600 8,100 = 2,170 17,630
8. 10,000 $10,000
Bal… $15,200 $5,900 $600 $8,100 = $10,000 $2,170 $17,630
Check $29,800 = $29,800
Req. (b): -
Maria Gonzalez
Nashville, Tennessee Income Statement
For the Month Ended September 30, 20xx.
 Revenue Amount Amount
Service revenue $8,000
Total revenues $8,000
Expenses:
Salaries expense $1,700
Rent expense 900
Advertising expense 300
Utilities expense 170
Total expenses (3,070)
Net income $4,930
Maria Gonzalez
Nashville, Tennessee
Owner's Equity Statement
For the Month Ended September 30, 20xx
Amount Amount
P. Perez, Capital, September 1 $13,700
Add: Net income 4,930
$18,630
Less: Drawings (1,000)
P. Perez, Capital, September 30 $17,630
Maria Gonzalez
Nashville, Tennessee,
Balance Sheet September 30, 20xx.
Assets Amount
Cash $15,200
Accounts receivable 5,900
Supplies 600
Office Equipment 8,100
Total assets $29,800
Liabilities and Owner's Equity
Liabilities:
Notes payable $10,000
Accounts payable 2,170
Total liabilities $12,170
Owner's equity:
Gonzalez, Capital 17,630
Total liabilities and owner's equity $29,800
Ans. (i) Ending capital = $17,630, (ii) Net income $4,930, (iii) Ending owner's equity = $17,630, (iv) Balance sheet
totals = $29,800.

Problem – 12 [DU -BBA - 2017]

Mr. Zaman opened a law office on July 1, 2014. On July 31 the Balance sheet showed:
Assets Tk. Liabilities Tk.
Cash 4,000 Accounts Payable 4,200
Accounts Receivable 1,500 Capital 6,800
Supplies 500
Office Equipment 5,000
11,000 11,000
During August the following transactions occurred.
1. Collected Tk. 1,400 on accounts receivable.
2. Paid Tk. 2,700 cash on accounts payable.
3. Earned revenue of Tk. 7,500 of which Tk. 3,000 is collected in cash and the balance is due in September.
4. Purchased additional office equipment for Tk. 1,000 paying Tk. 400 in cash and the balance on account.
5. Paid salaries Tk. 2,500, rent for August Tk. 900 and advertising expenses Tk. 350.
6. Withdrew Tk. 550 in cash for personal use.
7. Received Tk. 2,000 from prime Bank money borrowed on a note payable.
8. Incurred utility expenses for the month on account Tk. 300.
Instructions:
Prepare a tabular analysis of the August transactions beginning with July 31 Balance.

Solution
Mr. Zaman’s
Accounting Equation
Date Assets = Liabilities + O/E
2014 Cash A/R Supplies Office = Notes A/P Mr. Zaman’s Remarks
July Equip. Payable Capital
Bal. b/d 4,000 1,500 500 5,000 = 4,200 6,800
1. 1,400 (1,400) =
Bal… 5,400 100 500 5,000 = 4,200 6,800
2. (2,700) (2,700)
Bal… 2,700 100 500 5,000 = 1,500 6,800
3. 3,000 4,500 7,500 Revenue
Bal… 5,700 4,600 500 5,000 = 1,500 14,300
4. (400) 1,000 600
Bal… 5,300 4,600 500 6,000 = 2,100 14,300
5. (2,500) (2,500) Salaries Expense
(900) (900) Rent Expense
(350) (350) Advertising Expense
Bal… 1,550 4,600 500 6,000 = 2,100 10,550
6. (550) (550) Withdrew
Bal… 1,000 4,600 500 6,000 = 2,100 10,000
7. 2,000 2,000
Bal… 3,000 4,600 500 6,000 = 2,000 2,100 10,000
8. 300 (300) Utilities Expense
Bal… 3,000 4,600 500 6,000 2,000 2,400 9,700
Total 14,100 = 14,100

Problem – 13 Service Concern [DU BBA - 2015]

Laboni started her own consulting firm from July, 2014. The following transactions made during the month of July:
July
1 Invested Tk. 4,00,000 in the firm.
2 Paid Tk. 25,000 for office rent for the month.
4 Purchased Tk. 15,000 Supplies on account.
5 Paid Tk. 5,000 for advertising in the Purbanchal.
8 Receive Tk. 1,00,000 for service provided.
13 Withdraw Tk. 25,000 for personal use.
16 Performed Tk. 50,000 of service on account.
18 Paid Tk. 30,000 for employee's salaries.
20 Paid for Supplies Purchases on July 4.
24 Received 75% for service provided on account on July 16.
25 Borrowed Tk. 1,00,000 from NBL.
28 Purchased office equipment for Tk. 1,20,000 on account.
31 Paid Tk. 5,000 for utilities.
Required:
Arrange the transactions in accounting equation.

Solution
Laboni Consulting Firm
Accounting Equation
Date Assets = Liabilities + O/E
2014 Cash A/R Supplies Office = Notes A/P Laboni’s Remarks
July Equip. Payable Capital
 ”1 4,00,000 = 4,00,000
Bal… 4,00,000 = 4,00,000
”2 (25,000) (25,000) Office Rent
Bal… 3,75,000 = 3,75,000
”4 15,000 15,000
Bal… 3,75,000 15,000 = 15,000 3,75,000
”5 (5,000) (5,000) Advertisement
Bal… 3,70,000 15,000 = 15,000 3,70,000
”8 1,00,000 1,00,000 Service Revenue
Bal… 4,70,000 15,000 = 15,000 4,70,000
” 13 (25,000) (25,000) Withdrawals
Bal… 4,45,000 15,000 = 15,000 4,45,000
” 16 50,000 50,000 Service Revenue
Bal… 4,45,000 50,000 15,000 = 15,000 4,95,000
” 18 (30,000) (30,000) Salary Expense
Bal… 4,15,000 50,000 15,000 = 15,000 4,65,000
” 20 (15,000) (15,000)
Bal… 4,00,000 50,000 15,000 = …… 4,65,000
” 24 37,500 (37,500)
Bal… 4,37,500 12,500 15,000 = …… 4,65,000
” 25 1,00,000 1,00,000
Bal… 5,37,500 12,500 15,000 1,00,000 …… 4,65,000
” 28 1,20,000 1,20,000
Bal… 5,37,500 12,500 15,000 1,20,000 = 1,00,000 1,20,000 4,65,000
” 31 (5,000) (5,000) Utility
Bal.. 5,32,500 12,500 15,000 1,20,000 = 1,00,000 1,20,000 4,60,000
Total 6,80,000 = 6,80,000

BASIS - 2: TRADE BUSINESS CONCERN

Problem – 14 [N.U- BBA (Hons.) -2005]
Show the effect on the accounting equation for the month of January. 2006 form the following transactions:
i. Rahim started business with cash Tk. 1,50,000.
ii. Purchased Machinery Tk. 16,000 for cash.
iii. Purchased Merchandise inventory from Karim on credit Tk. 4,000.
iv. Purchased Merchandising inventory by cash Tk. 25,000.
v. Merchandising sales Tk. 17,000 of which cost price Tk. 15,000.
vi. Merchandising sales to Rahman on credit Tk. 15,000 of which cost price Tk. 12,000.
vii. Salary paid Tk. 3,000.
viii. Received from Merchandising credit sales Tk. 9,000.
ix. Bad debt allowance Tk. 1,000.
x. Commission received Tk. 4,000.

Solution
In the book of ………………….
Equation (Tabular Method)
For the month of January, 2006
Assets = Liabilities + O/E
Date Cash Machiner Merchandise A/R = A/P Rahim’s Remarks
y Inventory Capital
i. 1,50,000 = 1,50,000 Investment
ii. (16,000) 16,000 =
iii. 4,000 = 4,000
iv. (25,000) 25,000 =
v. 17,000 (15,000) = 2,000 Revenue
vi. (12,000) 15,000 = 3,000 Revenue
vii. (3,000) = (3,000) Salary Expense
 viii. 9,000 (9,000) =
ix. (1,000) = (1,000) Bad Debt Expense
x. 4,000 = 4,000 Com. Revenue
Bal 1,36,000 16,000 2,000 5,000 = 4,000 1,55,000
…
Tota 1,59,000 = 1,59,000
l

Problem – 15 Trade business Concern [N.U- BBA (Hons.) -2008]

Mahedi Hassan Enterprise completed the following transactions in July, 2007:
July:
1 The owner sold his personal investment for Tk. 1,50,000 and brought in as capital Tk. 1,00,000.
3 Paid house rent Tk. 4,000.
4 Purchased merchandise for cash Tk. 60,000.
8 Purchased merchandise from Aziz Tk. 90,000 on account.
10 Borrowed tk. 60,000 from Dhaka Bank and signed a notes payable.
15 Sold merchandise for cash tk. 75,000 (cost Tk. 60,000).
20 Sold merchandise to Imran Tk. 1,00,000 (cost Tk. 80,000).
25 Returned merchandise sold on July 20 Tk. 5,000 (cost Tk. 4,000).
30 Payment received on account Tk. 50,000.
31 Paid advertising bill for Tk. 5,000.
Instructions:
(i) Show the effects of the above transactions on the accounting equation.
(ii) Prove the accounting equation.

Solution
Req. (i): -
In the book of Mahedi Hasan
Equation (Tabular Method)
For the month of January, 2006
Assets = Liabilities + O/E
Date Cash Merchandise A/R A/P Notes Mahedi’s Remarks
Inventory Payable Capital
July - 1,00,000 = 1,00,000 Investment
1
3 (4,000) = (4,000) Rent Expense
4 (60,000) 60,000 =
8 90,000 = 90,000
10 60,000 = 60,000
15 75,000 (60,000) = 15,000 Revenue
20 (80,000) 1,00,000 = 20,000 Revenue
25 4,000 (5,000) = (1,000) Expenses
30 50,000 (50,000) =
31 (5,000) = (5,000) Advertising Expense
Bal… 2,16,000 14,000 45,000 = 90,000 60,000 1,25,000
Total 2,75,000 = 2,75,000
Req. (ii): - Prove the Accounting:
We know,
A = L + OE
 Assets = Liabilities + Owner’s Equity
 Cash + M/I + A/R = A/P + N/P + Capital
 2,16,000 + 14,000 + 45,000 = 90,000 + 60,000 + 1,25,000
 2,75,000 = 2,75,000
 L.H.S = R.H.S (Proved)
Problem – 16 Trade Business Concern. [DU -BBA – 2016]
Mahmud Enterprise completed the following transactions in July, 2017.
July:
1 The owner sold his personal investment for Tk. 4,50,000 and brought in as capital TK. 2,00,000.
3 Paid rent Tk. 10,000.
4 Purchase merchandise for cash Tk. 60,000.
8 Purchase merchandise from Aziz Tk. 90,000 on account.
10 Borrowed Tk. 60,000 from Dhaka Bank and sign a note payable.
15 Sold merchandise for cash Tk. 75,000 (cost Tk. 60,000)
20 Sold merchandise to Imran Tk. 1,00,000 (cost Tk. 80,000).
25 Return merchandise sold on July 20, Tk. 5,000 (cost Tk. 4,000).
30 Payment received from Accounts Receivable Tk. 50,000.
31 Paid advertising bill for Tk. 5,000.
Required:
(i) Show the effect of above transactions on the accounting equation.
(ii) Prove the Accounting Equation.

Solution
In the book of Mahmud Ent.
Equation (Tabular Method)
For the month of January, 2006
Assets = Liabilities + O/E
Date Cash Merchandise A/R A/P Notes Mahmud’s Remarks
Inventory Payable Capital
July - 2,00,000 = 2,00,000 Investment
1
3 (10,000) = (10,000) Rent Expense
4 (60,000) 60,000 =
8 90,000 = 90,000
10 60,000 = 60,000
15 75,000 (60,000) = 15,000 Revenue
20 (80,000) 1,00,000 = 20,000 Revenue
25 4,000 (5,000) = (1,000) Expenses
30 50,000 (50,000) =
31 (5,000) = (5,000) Advertising Expense
Bal… 3,10,000 14,000 45,000 = 90,000 60,000 2,19,000
Total 3,69,000 = 3,69,000
Req. (ii): - Prove the Accounting:
We know,
A = L + OE
 Assets = Liabilities + Owner’s Equity
 Cash + M/I + A/R = A/P + N/P + Capital
 3,10,000 + 14,000 + 45,000 = 90,000 + 60,000 + 2,19,000
 3,69,000 = 3,69,000
 L.H.S = R.H.S (Proved)

BASIS-3: PUBLIC LTD. CONCERN

Problem – 17 [DU -BBA - 2015]
Mr. Zohir Hassan completed his civil engineering degree on 31 December 2009 and form 1st January 2010 set up his
engineering practice. During the month of operation be completed the following transaction:
a. Began engineering practice by exchanging Tk. 2,00,000 for 10,000 shares of Tk. 20 per value common stock of the
corporation.
b. Purchased engineering books for Tk. 9,000 cash.
c. Purchase office supplies for Tk. 4,000 on credit.
d. Accepted Tk. 5,000 in cash for completing a contract.
e. Billed clients Tk. 19,500 for service rendered during the month.
f. Paid Tk. 2,000 of the amount owed for office supplies.
g. Received Tk. 12,500 in cash form one client who had been billed previously for service rendered.
h. Paid rent expense for the month in the amount of Tk. 12,000.
i. Declared and paid a dividend of Tk. 4,000.
j. Paid insurance premium expense Tk. 1,000 for the month.
Required:
Show the effect of each of these transactions on the balance sheet equation by completing a table. Identify each
stockholder's equity transaction.

Solution
Arranging transaction in the accounting equation in tabular form
Assets = Liabilities + O/E
Date Cash A/R Office Engineering = A/P Common Retained Remarks
Supplies Books Stock Earnings
a 2,00,000 = 2,00,000 Investment
2,00,000 = 2,00,000
b (9,000) 9,000
1,91,000 9,000 = 2,00,000
c 4,000 4,000
1,91,000 4,000 9,000 = 4,000 2,00,000
d 5,000 5,000 Service Revenue
1,96,000 4,000 9,000 = 4,000 2,00,000 5,000
e 19,500 19,500 Service Revenue
1,96,000 19,500 4,000 9,000 = 4,000 2,00,000 24,500
f (2,000) (2,000)
1,94,000 19,500 4,000 9,000 = 2,000 2,00,000 24,500
g 12,500 (12,500)
2,06,500 7,000 4,000 9,000 = 2,000 2,00,000 24,500
h (12,000) (12,000) Rent Expense
1,94,500 7,000 4,000 9,000 = 2,000 2,00,000 12,500
i (4,000) (4,000) Dividend
1,90,500 7,000 4,000 9,000 = 2,000 2,00,000 8,500
j (1,000) (1,000) Insurance Expense
Bal… 1,89,500 7,000 4,000 9,000 = 2,000 2,00,000 7,500
Total 2,09,500 = 2,09,500

Problem – 18 Public Ltd. Concern [DU -BBA - 2014]

Mr. Bizu started a small shopping center. In the first month of operation, He completed the following transaction:
a. Deposited Tk. 2,00,000 in cash in the name of the company, in exchange for 20,000 shares of Tk. 10 par value stock
of the corporation.
b. Paid current month's rent Tk. 15,000.
c. Purchased store equipment on credit Tk. 1,10,000.
d. Purchased framing supplies for cash Tk. 50,000.
e. Received farming revenues Tk. 30,000.
f. Billed customers for services Tk. 50,000.
g. Paid utility expense Tk. 7,000.
h. Received payment from customers in transaction Tk. 10,000.
i. Made payment on store equipment purchased in transaction Tk. 55,000.
j. Declared and paid a dividend of Tk. 12,000.
k. Paid office salaries Tk. 15,000 for the current month.
Required:
Show by addition and subtraction the effect of the transactions on the accounting equation. Show new balances after
each transaction and identify each stockholder's equity transaction by type.

Solution
Arranging transaction in the accounting equation in tabular form
 Assets = Liabilities + O/E
Date Cash A/R Farming Store = A/P Common Retained Remarks
Supplies Equipment Stock Earnings
a 2,00,000 = 2,00,000 Investment
2,00,000 = 2,00,000
b (15,000) (15,000) Rent Expense
1,85,000 = 2,00,000 (15,000)
c 1,10,000 1,10,000
1,85,000 1,10,000 = 1,10,000 2,00,000 (15,000)
d (50,000) 50,000
1,35,000 50,000 1,10,000 = 1,10,000 2,00,000 (15,000)
e 30,000 30,000 Service Revenue
1,65,000 50,000 1,10,000 = 1,10,000 2,00,000 15,000
f 50,000 50,000 Service Revenue
1,65,000 50,000 50,000 1,10,000 = 1,10,000 2,00,000 65,000
g 7,000 (7,000) Utility Expense
1,58,000 50,000 50,000 1,10,000 = 1,10,000 2,00,000 58,000
h 10,000 (10,000)
1,68,000 40,000 50,000 1,10,000 = 1,10,000 2,00,000 58,000
i (55,000) (55,000)
1,13,000 40,000 50,000 1,10,000 = 55,000 2,00,000 58,000
j (12,000) (12,000) Dividend
1,01,000 40,000 50,000 1,10,000 55,000 2,00,000 46,000
k (15,000) (15,000) Office Salaries
Bal… 86,000 40,000 50,000 1,10,000 = 55,000 2,00,000 31,000
Total 2,86,000 = 2,86,000

Problem – 19 Public Ltd. Concern [DU -BBA - 2013]

A Ltd. Company started a Photography service with an authorized Capital of Tk. 4,00,000 divided into 40,000 shares of
Tk. 10 each. The company issued and subscribed all the shares and received all the shares money in full on 1 st January
2016.
During the month of January, the following events and transactions occurred:
Jan-01 Purchased Photography Equipment for Tk. 2,00,000 for cash.
Jan-02 Paid the rent on the shop space for the current month of Tk. 20,000.
Jan-05 Purchase office supplies for Tk. 4,000 on credit.
Jan-10 Accepted Tk. 50,000 in cash for completing a contract.
Jan-12 Billed clients Tk. 20,000 for service rendered during the month.
Jan-15 Paid Tk. 2,000 of the amount owed for office supplies.
Jan-20 Paid Advertising expense for the month in the amount of Tk. 12,000.
Jan-22 Declared and paid a dividend of Tk. 10,000.
Jan-23 Paid insurance premium expense Tk. 1,000 for the month.
Jan-25 Received Tk. 30,000 in cash for completing a contract.
Jan-31 Recognized that one month’s Salary is accrued of Tk. 4,000.
Required:
Show the effect of each of these transactions on the balance sheet equation by completing a table. Identify each
stockholder's equity transaction.

Solution
Arranging transaction in the accounting equation in tabular form
Assets = Liabilities + O/E
Cash A/R Office Photograph = A/P Commo Retained
Date Remarks
Supplies y n Earnings
Equipment Stock
Jan - 1 4,00,000 = 4,00,000 Investment
Jan - 1 (2,00,000) 2,00,000
Bal… 2,00,000 2,00,000 = 4,00,000
Jan - 2 (20,000) (20,000) Rent Expense
Bal… 1,80,000 2,00,000 = 4,000 4,00,000 (20,000)
Jan -5 4,000
Bal… 1,80,000 4,000 2,00,000 = 4,000 4,00,000 (20,000)
Jan - 10 50,000 50,000 Service Revenue
Bal… 2,30,000 4,000 2,00,000 = 4,000 4,00,000 30,000
Jan - 12 20,000 20,000 Service Revenue
Bal… 2,30,000 20,000 4,000 2,00,000 = 4,000 4,00,000 50,000
Jan - 15 (2,000) (2,000)
Bal… 2,28,000 20,000 4,000 2,00,000 = 2,000 4,00,000 50,000
Jan - 20 (12,000) (12,000) Advertising Exp.
Bal… 2,16,000 20,000 4,000 2,00,000 = 2,000 4,00,000 38,000
Jan - 22 (10,000) (10,000) Dividend
Bal… 2,06,000 20,000 4,000 2,00,000 = 2,000 4,00,000 28,000
Jan - 23 (4,000) (4,000) Dividend
Bal… 2,02,000 20,000 4,000 2,00,000 = 2,000 4,00,000 24,000
Jan - 25 30,000 30,000 Service Revenue
Bal… 2,32,000 20,000 4,000 2,00,000 2,000 4,00,000 54,000
Jan - 31 (4,000) (4,000) Salaries Expense
Bal… 2,28,000 20,000 4,000 2,00,000 = 2,000 4,00,000 50,000
Total 4,52,000 = 4,52,000

UNIVERSITY QUESTION
Problem – 20 Trade Business Concern [N.U- BBA (Hons.) - 2010]
From the following transactions prepare a Tabular analysis of transactions showing effect of accounting equation.
Transactions occurred 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 of goods on account Tk. 2,00,000.
iii. Three month's rent Tk. 15,000 was 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.

Solution
Arranging transaction in the accounting equation in tabular form
Assets = L + O/E
Date Cash A/R M/I Furniture Equip. Prepaid = A/P Capital Remarks
Rent
i. 1,00,000 2,00,000 1,00,000 1,00,000 = 5,00,000 Investment
ii. 2,00,000 = 2,00,000
iii. (15,000) 15,000 =
iv. 1,00,000 (80,000) = 20,000 Profit on Sales
v. (1,80,000) = (2,00,000) 20,000 Dis. Revenue
vi. 2,00,000 (1,50,000) = 50,000 Profit on Sales
vii. 1,80,000 (2,00,000) = (20,000) Discount Exp.
viii. (5,000) = (5,000) Rent Expense
Bal… 1,85,000 Nil 1,70,000 1,00,000 1,00,000 10,000 = Nil 5,65,000
Total 5,65,000 = 5,65,000
Problem – 21 [N.U- BBA (Hons.) Dept. of Marketing-2016]
Presented below are the components in Hudson Company's income statement. Determine the missing amounts:
Sales Cost of goods sold Gross profit Operating Net Income
expenses
i Tk. 75,000 ? Tk. 30,000 ? Tk. 10,800
ii Tk. 1,08,000 Tk. 70,000 ? ? Tk. 29,500
iii ? Tk. 83,900 Tk. 89,600 Tk. 39,500 ?

Solution
Calculation of missing amounts.
(i) We Know that,
Cost of goods sold = Sales – Gross profit
= 75,000 – 30,000 = 45,000
Operating Exp. = Gross profit - Net Income
= 30,000 – 10,800 = 19,200
(ii) Gross profit = Sales – Cost of goods sold
= 1,08,000 – 70,000 = Tk. 38,000
Operating Exp. = Gross profit – Net Income
= 38,000 – 29,500 = Tk. 8,500
(iii) Sales = Cost of goods sold + Gross Profit
= 83,900 + 89,600 = Tk. 1,73,500
Net Income = Gross profit – Operating Expense
= 79,600 – 39,500 = Tk. 40,100
Complete a table
Sales Cost of goods sold Gross profit Operating Net Income
expenses
i Tk. 75,000 Tk. 45,000 Tk. 30,000 Tk. 19,200 Tk. 10,800
ii Tk. 1,08,000 Tk. 70,000 Tk. 38,000 Tk. 8,500 Tk. 29,500
iii TK. 1,73,500 Tk. 89,900 Tk. 89,600 Tk. 39,500 Tk. 40,100

Problem – 22 [N.U-BBA (Hons.) Dept. of Management-2016]

Given the accounting equation, answer each of the following questions
(a) The liabilities of Nayeem Company are Tk. 1,20,000 and the owner s equity is Tk. 2,32,000. What is the amount of
Nayeem Company's total assets?
(b) The total assets of Naveem Company are Tk. 1,90,000 and its owner's equity is Tk. 91,00. 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 its total assets.
What is the amount of Nayeem Company's owner's equity?

Solution
Required:
a. Calculation of Total Assets.
We know that, Total Assets = Liabilities + Owner’s Equity = 1,20,000 + 2,32,000 = 3,52,000 Ans.
Required:
b. Calculation of Liabilities.
We know that, Total Assets = Liabilities + Owner’s Equity
 1,90,000 = Liabilities + 91,000
 Liabilities = 1,90,000 – 91,000
.ᱸ. Liabilities = 99,000 Ans.
Required:
c. Calculation of Owner’s Equity.
1 1
We know that, Owner’s Equity = Total Assets × = 8,00,000 × = 4,00,000 Ans.
2 2

Problem – 23 [NU- BBA (Hons.) Dept. of Accounting-2017]

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

Solution
Required – (a): Calculation of Owner's equity:
Here:
Total assets = 5,10,000 External liabilities = (5,10,000 ÷ 3) × 1 = 1,70,000 Owners equity =?
We know that,
Total assets = Total external liabilities + Owner’s equity.
 5,10,000 = 1,70,000 + Owner’s equity.
 5,10,000 – 1,70,000 = Owner’s equity.
 3,40,000 = Owner’s equity.
 Owner’s equity = 3,40,000 Ans.
Required - (b): Calculation of Total assets:
Here:
Owner’s equity = 3,10,000 External liabilities=1,50,000 Total assets =?
We know that,
Total assets = Total external liabilities + Owner’s equity.
 Total assets = 1,70,000 + 3,10,000
 Total assets = 4,80,000
.ᱸ. Total assets = Tk. 4,80,000 Ans.
Required - (c): Calculation of External liabilities:
Here:
Owner’s equity = 75,000 Total assets = 2,00,000 External liabilities =?
We know that,
Total assets = Total external liabilities + Owners equity.
 2,00,000 = External liabilities + 75,000
 External liabilities + 75,000 = 2,00,000
 External liabilities = 2,00,000 – 75,000
 External liabilities = 1,25,000
.ᱸ. External liabilities = Tk. 1,25,000 Ans.