UNDERSTAND · PRACTISE · REVIEW
Separate business assets, obligations and the owner's claim. A transaction can affect two asset accounts without changing total equity. Explain both sides of the transaction rather than memorising a sign.
A worked example
Try this learning routine
- Read the explanation and say the idea in your own words.
- Cover the worked answer and attempt a similar question.
- Check each step, including units or word meaning.
- Record one mistake and retry a new example later.
Independent practice
Choose one answer for each question and write a reason. These are foundation activities, not a complete board examination.
The basic accounting equation is:
A business has assets ₹11000 and liabilities ₹1000. Find equity.
A business has assets ₹12000 and liabilities ₹2000. Find equity.
A business has assets ₹13000 and liabilities ₹3000. Find equity.
A business has assets ₹14000 and liabilities ₹4000. Find equity.
A business has assets ₹15000 and liabilities ₹5000. Find equity.
Answers and explanations
- Assets = Liabilities + Equity — Assets are financed by claims of creditors and owners.
- 10000 — Equity = assets − liabilities = 11000 − 1000 = ₹10000.
- 10000 — Equity = assets − liabilities = 12000 − 2000 = ₹10000.
- 10000 — Equity = assets − liabilities = 13000 − 3000 = ₹10000.
- 10000 — Equity = assets − liabilities = 14000 − 4000 = ₹10000.
- 10000 — Equity = assets − liabilities = 15000 − 5000 = ₹10000.
Your next step
Use the same idea in a fresh example. Bring the method and your questions to a discussion with TRICEF, rather than relying on a score alone.
Original TRICEF Academy practice material. Not an official board paper. Open the answer section before printing if you want the answer key included.