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Page No 8.68:

Question 1:

Following transactions of Ramesh for April, 2019 are given below. Journalise them.
 

2019   ₹
April 1  Ramesh started business with cash 1,00,000
April 2  Paid into bank 20,000
April 3  Bought goods for cash 50,000
April 4  Drew cash from bank for office use 10,000
April 13  Sold goods to Krishna 15,000
April 20  Bought goods from Shyam 22,500
April 22  Krishna returned goods 2,000
April 24  Received from Krishna 12,500
   Allowed him discount 500
April 28  Paid cash to Shyam 21,500
   Discount received  1,000
April 30  Cash sales for the month 80,000
April 30  Paid rent 5,000
April 30  Paid salary 10,000
     

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2019
 
 
 
 
 
Apr 01
Cash A/c
Dr.
 
1,00,000
 
 
  To Capital A/c
 
 
 
1,00,000
 
(Started business with cash)
 
 
 
 
 
 
 
 
 
 
Apr 02
Bank A/c
Dr.
 
20,000
 
 
  To Cash A/c
 
 
 
20,000
 
(Paid into bank)
 
 
 
 
 
 
 
 
 
 
Apr 03
Purchases A/c
Dr.
 
50,000
 
 
To Cash A/c
 
 
 
50,000
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
Apr 04
Cash A/c
Dr.
 
10,000
 
 
  To Bank A/c
 
 
 
10,000
 
(Drew from bank for office use)
 
 
 
 
 
 
 
 
 
 
Apr 13
Krishna A/c
Dr.
 
15,000
 
 
  To Sales A/c
 
 
 
15,000
 
(Goods sold to Kirshna for Cash)
 
 
 
 
 
 
 
 
 
 
Apr 20
Purchases A/c
Dr.
 
22,500
 
 
To Cash A/c
 
 
 
22,500
 
(Goods purchased for cash)
 
 
 
 
           
Apr 22 Sales Return A/c Dr.   2,000  
    To Krishna A/c       2,000
  (Goods sold to Krishna returned)        
 
 
 
 
 
 
Apr 24
Cash A/c
Dr.
 
12,500
 
 
Discount Allowed A/c
Dr.
 
500
 
 
  To Krishna A/c
 
 
 
13,000
 
(Received from Krishna)
 
 
 
 
 
 
 
 
 
 
Apr 28
Shyam A/c
Dr.
 
22,500
 
 
  To Cash A/c
 
 
 
21,500
 
  To Discount Received A/c
 
 
 
1,000
 
(Paid to Shyam)
 
 
 
 
 
 
 
 
 
 
Apr 30
Cash A/c
Dr.
 
80,000
 
 
  To Sales
 
 
 
80,000
 
(Cash sales for the month of April)
 
 
 
 
 
 
 
 
 
 
Apr 30
Rent A/c
Dr.
 
5,000
 
 
  To Cash A/c
 
 
 
5,000
 
(Paid rent)
 
 
 
 
 
 
 
 
 
 
Apr 30
Salary A/c
Dr.
 
10,000
 
 
  To Cash A/c
 
 
 
10,000
 
(Paid salary)
 
 
 
 



Page No 8.69:

Question 2:

Journalise the following transactions of Mr. Rahul:

2019   ₹
Jan. 1  Rahul started business with cash  1,00,000
Jan. 2  Paid into bank  60,000
Jan. 3  Bought goods from M/s. Singh & Co. 20,000
Jan. 3  Paid cartage  300
Jan. 4  Purchased furniture 2,000
Jan. 4  Placed an order for HP Printers for â‚¹ 15,000, amount advanced  5,000
Jan. 4  Purchased calculator 1,000
Jan. 4  Purchased computer through cheque 13,000
Jan. 6  Paid for postage 150
Jan. 8   Sold goods for cash 4,000
Jan. 9  Sold goods to M/s. Sharda & Co. 10,000
Jan. 9  Paid cartage 200
Jan. 15  Paid to M/s Singh & Co. on account  17,500
Jan. 25  Sold goods to M/s. Ray & Co. 5,600
Jan. 27  Received cheque from M/s. Sharda & Co. in full settlement of amount due from them 9,750
Jan. 31   Paid for electricity charges  1,000
Jan. 31  Paid salary 1,500
Jan. 31 ​ Paid rent of building by cheque, half of the building is used by the proprietor for residential use  5,000
Jan. 31  Drew for private use 3,500

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2019

 

 

 

 

 

Jan.01

Cash A/c

Dr.

 

1,00,000

 

 

     To Capital A/c

 

 

 

1,00,000

 

(Business started with cash)

 

 

 

 

 

 

 

 

 

 

Jan.02

Bank A/c

Dr.

 

60,000

 

 

    To Cash A/c

 

 

 

60,000

 

(Cash deposited into cash)

 

 

 

 

 

 

 

 

 

 

Jan.03

Purchases A/c

Dr.

 

20,000

 

 

     To Cash A/c

 

 

 

20,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

Jan.03

Cartage A/c

Dr.



 

300

 

 

  To Cash A/c

 

 

 

300

 

(Cartage paid)

 

 

 

 

 

 

 

 

 

 

Jan.04

Furniture A/c

Dr.

 

2,000

 

 

    To Bank A/c

 

 

 

2,000

 

(Furniture purchased by cheque)

 

 

 

 

 

 

 

 

 

 

Jan.04

HP Printers A/c

Dr.

 

5,000

 

 

     To Bank A/c

 

 

 

5,000

 

(Advance paid for placing an order for printer)

 

 

 

 

 

 

 

 

 

 

Jan.04

Office Equipments A/c

Dr.

 

1,000

 

 

     To Bank A/c

 

 

 

1,000

 

(Calculator purchased by cheque)

 

 

 

 

 

 

 

 

 

 

Jan.04

Computer A/c

 

 

13,000

 

 

     To Bank A/c

 

 

 

13,000

 

(Computer purchased by cheque)

 

 

 

 

 

 

 

 

 

 

Jan.06

Postage A/c

Dr.

 

150

 

 

    To Cash A/c

 

 

 

150

 

(Postage paid)

 

 

 

 

 

 

 

 

 

 

Jan.08

Cash A/c

Dr.

 

4,000

 

 

    To Sales A/c

 

 

 

4,000

 

(Goods Sold)

 

 

 

 

 

 

 

 

 

 

Jan.09

Cash A/c

Dr.

 

10,000

 

 

    To Sales A/c

 

 

 

10,000

 

(Goods Sold)

 

 

 

 

 

 

 

 

 

 

Jan.09

Cartage A/c

Dr.

 

200

 

 

    To Cash A/c

 

 

 

200

 

(Cartage paid)

 

 

 

 

 

 

 

 

 

 

Jan.15

M/s Singh & Co. A/c

Dr.

 

17,500

 

 

    To Cash A/c

 

 

 

17,500

 

(Payment made)

 

 

 

 

 

 

 

 

 

 

Jan.25

M/s Ray & Co.  A/c

Dr.

 

5,600

 

 

    To Sales A/c

 

 

 

5,600

 

(Goods Sold)

 

 

 

 

 

 

 

 

 

 

Jan.27

Bank A/c

Dr.

 

9,750

 

 

Discount Allowed A/c

Dr.

 

250

 

 

    To M/s Sharda & Co.  A/c

 

 

 

10,000

 

(Payment Received)

 

 

 

 

 

 

 

 

 

 

Jan.31

Electricity Charges A/c

Dr.

 

1,000

 

 

    To Cash A/c

 

 

 

1,000

 

(Electricity Charges paid)

 

 

 

 

 

 

 

 

 

 

Jan.31

Salary A/c

Dr.

 

1,500

 

 

    To Cash A/c

 

 

 

1,500

 

(Salary paid)

 

 

 

 

 

 

 

 

 

 

Jan.31

Rent A/c

Dr.

 

2,500

 

 

Drawings A/c

Dr.

 

2,500

 

 

    To Cash A/c

 

 

 

5,000

 

(Rent paid)

 

 

 

 

 

 

 

 

 

 

Jan.31

Drawings A/c

Dr.

 

3,500

 

 

    To Cash A/c

 

 

 

3,500

 

(Cash withdrawn for personal use)

 

 

 

 

 

 

 

 

 

Page No 8.69:

Question 3:

Journalise the following transactions in the books of M/s. R.K. & Co.:
(i) Purchased goods of list price of ₹ 20,000 from Vishal at 20% trade discount against cheque payment.
(ii) Purchased goods of list price of ₹ 20,000 from Naman at 15% trade discount against cash.
(iii) Purchased goods of list price of ₹ 30,000 from Amrit at 20% trade discount.
(iv) Purchased goods of list price of ₹ 40,000 for â‚¹ 35,000 for cash.
(v) Goods returned of list price ₹ 10,000 purchased from Amrit.
(vi) Sold goods to Parul of list price of ₹ 40,000 at 10% trade discount against cheque payment.
(vii) Sold goods to Aman of list price of ₹ 30,000 at 10% trade discount against cash.
(viii) Sold goods to Pawan of list price of ₹ 20,000 at 10% trade discount.
(ix) Sold goods to Yamini of list price of ₹ 25,000 for ₹ 23,000.
(x) Sold goods costing â‚¹ 10,000 at cost plus 20% less 10% trade discount to Bhupesh.
(xi) Sold goods purchased at list price of ₹ 50,000 less 15% trade discount sold at a profit of 25% less 10% trade discount against cheque.
(xii) Aman returned goods of list price of ₹ 10,000 sold to him at 10% trade discount.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

 

 

 

 

 

(i)

Purchase A/c

Dr.

 

16,000

 

 

    To Bank A/c

 

 

 

16,000

 

(Goods purchased from Vishal by cheque)

 

 

 

 

 

 

 

 

 

 

(ii)

Purchase A/c

Dr.

 

17,000

 

 

    To Cash A/c

 

 

 

17,000

 

(Goods purchased from Naman for cash)

 

 

 

 

 

 

 

 

 

 

(iii)

Purchase A/c

Dr.

 

24,000

 

 

    To Amrit

 

 

 

24,000

 

(Goods purchased from Amrik on credit)

 

 

 

 

 

 

 

 

 

 

(iv)

Purchase A/c

Dr.

 

35,000

 

 

    To Cash A/c

 

 

 

35,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

(v)

Amrit

Dr.

 

8,000

 

 

   To Purchase Returns A/c

 

 

 

8,000

 

(Goods returned by Amrik)

 

 

 

 

 

 

 

 

 

 

(vi)

Bank A/c

Dr.

 

36,000

 

 

   To Sales A/c

 

 

 

36,000

 

(Goods sold to Parul by cheque)

 

 

 

 

 

 

 

 

 

 

(vii)

Cash A/c

Dr.

 

27,000

 

 

   To Sales A/c

 

 

 

27,000

 

(Goods sold to Aman for cash)

 

 

 

 

 

 

 

 

 

 

(viii)

Pawan

Dr.

 

18,000

 

 

   To Sales A/c

 

 

 

18,000

 

(Goods sold to Pawan on credit)

 

 

 

 

 

 

 

 

 

 

(ix)

Yamini 

Dr.

 

23,000

 

 

   To Sales A/c

 

 

 

23,000

 

(Goods sold to Yamini on credit)

 

 

 

 

 

 

 

 

 

 

(x)

Bhupesh 

Dr.

 

10,800

 

 

   To Sales A/c

 

 

 

10,800

 

(Goods sold to Bhupesh on credit)

 

 

 

 

 

 

 

 

 

 

(xi)

Bank A/c

Dr.

 

47,812.50

 

 

   To Sales A/c

 

 

 

47,812.50

 

(Goods sold against cheque)

 

 

 

 

 

 

 

 

 

 

(xii)

Sales Returns A/c

Dr.

 

9,000

 

 

   To Aman

 

 

 

9,000

 

(Goods returned by Aman )

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1: Calculation of Sales price

Sales Price = (10,000+20%=12,00010%)=Rs 10,800

WN 2: Calculation of Purchase price and Sales price 

Purchase Price =(50,00015%) Rs 42,500Sales Price =(42,500+25%=53,12510%)=Rs 47,812.5

Page No 8.69:

Question 4:

Journalise the following transactions in the books of Bhushan Agencies:
(i) Received from Bharat cash â‚¹ 20,000, allowed him discount of ₹ 500.
(ii) Received from Vikas ₹ 35,000 by cheque, allowed him discount of ₹ 750.
(iii) Received from Akhil ₹ 38,000 in settlement of his dues of ₹ 40,000 in cash.
(iv) Received from Amrit ₹ 50,000 by cheque on account against dues of ₹ 60,000.
(v) Paid cash ₹ 40,000 to suresh, availed discount of 2%.
(vi) Paid by cheque ₹ 25,000 to Mehar and settled her dues of ₹ 26,000.
(vii) Paid ₹ 25,000 to Yogesh by cheque on account.
(viii) Purchased goods costing ₹ 1,00,000 against cheque and availed discount of 3%.
(ix) Purchased goods costing ₹ 60,000 from Akash & Co., paid 50% immediately availing 3% discount.
(x) Sold goods of ₹ 30,000 against cheque allowing 2% discount.
(xi) Sold goods of ₹ 60,000 to Vimal received 50% of due amount allowing 2% discount.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

 

 

 

 

 

(i)

Cash A/c

Dr.

 

20,000

 

 

Discount Allowed A/c

Dr.

 

500

 

 

     To Bharat

 

 

 

20,500

 

(Payment received from Bharat)

 

 

 

 

 

 

 

 

 

 

(ii)

Bank A/c

Dr.

 

35,000

 

 

Discount Allowed A/c

Dr.

 

750

 

 

     To Vikas

 

 

 

35,750

 

(Payment received from Vikas)

 

 

 

 

 

 

 

 

 

 

(iii)

Cash A/c

Dr.

 

38,000

 

 

Discount Allowed A/c

Dr.

 

2,000

 

 

     To Akhil

 

 

 

40,000

 

(Payment received from Akhil)

 

 

 

 

 

 

 

 

 

 

(iv)

Bank A/c

Dr.

 

50,000

 

 

     To Amrit

 

 

 

50,000

 

(Payment received from Amrit)

 

 

 

 

 

 

 

 

 

 

(v)

Suresh

Dr.

 

40,000

 

 

   To Cash A/c

 

 

 

39,200

 

   To Discount Received A/c

 

 

 

800

 

(Payment made to Suresh)

 

 

 

 

 

 

 

 

 

 

(vi)

Mehar

Dr.

 

26,000

 

 

   To Bank A/c

 

 

 

25,000

 

   To Discount Received A/c

 

 

 

1,000

 

(Payment made to Meher)

 

 

 

 

 

 

 

 

 

 

(vii)

Yogesh

Dr.

 

25,000

 

 

      To Bank A/c

 

 

 

25,000

 

(Payment made to Yogesh)

 

 

 

 

 

 

 

 

 

 

(viii)

Purchases A/c

Dr.

 

97,000

 

 

      To Bank A/c

 

 

 

97,000

 

(Goods bought against cheque)

 

 

 

 

 

 

 

 

 

 

(ix)

Purchases A/c

Dr.

 

60,000

 

 

    To Akash & Co.

 

 

 

30,000

 

    To Cash A/c

 

 

 

29,100

 

    To Discount Received A/c

 

 

 

900

 

(Goods bought from Akash & Co.)

 

 

 

 

 

 

 

 

 

 

(x)

Bank A/c

Dr.

 

29,400

 

 

     To Sales A/c

 

 

 

29,400

 

(Goods sold against cheque)

 

 

 

 

 

 

 

 

 

 

(xi)

Vimal

Dr.

 

30,000

 

 

Cash A/c

Dr.

 

29,400

 

 

Discount Allowed A/c

Dr.

 

600

 

 

     To Sales A/c

 

 

 

60,000

 

(Goods sold to Vimal)

 

 

 

 

 

 

 

 

 



Page No 8.70:

Question 5:

Journalise the following transactions:

     â‚¹
(i) Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his Official Receiver. He owed us   10,000
(ii) Received cash for bad debts written off last year. 5,000
(iii) Rent due to landlord. 8,000
(iv) Salaries due to clerks. 10,000
(v) Placed an order with Rakesh Mohan for the supply of goods of the list price of ₹ 1,00,000. In this connection, Raman paid 10% of the list price as an advance by cheque.  

Answer:

Journal

Sr. No.

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

 

 

 

 

(i)

Cash A/c

Dr.

 

7,500

 

 

Bad Debts A/c

Dr.

 

2,500

 

 

To Shyam’s A/c

 

 

10,000

 

(Insolvency of Shyam with 75 paisa in a rupee recoverable)

 

 

 

 

 

 

 

 

(ii)

Cash A/c

Dr.

 

5,000

 

 

To Bad Debts Recovered A/c

 

 

5,000

 

(Amount written off as bad debts recovered)

 

 

 

 

 

 

 

 

(iii)

Rent A/c

Dr.

 

8,000

 

 

To Outstanding Rent A/c

 

 

8,000

 

(Rent due to landlord)

 

 

 

 

 

 

 

 

(iv)

Salary A/c

Dr.

 

10,000

 

 

To Outstanding Salary A/c

 

 

10,000

 

(Salary due to clerk)

 

 

 

 

 

 

 

 

(v)

Advance to Rakesh Mohan A/c

Dr.

 

10,000

 

 

To Bank A/c

 

 

10,000

 

(Advance paid to Rakesh Mohan for a future order)

 

 

 

 

 

 

 

 

Page No 8.70:

Question 6:

Journalise the following entries:
(i) Goods costing ₹ 500 given as charity.
(ii) Sold goods to Mayank of ₹ 1,00,000, payable 25% by cheque at the time of sale and balance after 30 days of sale.
(iii) Received ₹ 975 from Harikrishna in full settlement of his account of ₹ 1,000.
(iv) Received a first and final dividend of 60 paise in a rupee from the Official Receiver of Rajan, who owed us ₹ 1,000.
(v) Charge interest on Drawings ₹ 1,500.
(vi) Sold goods costing ₹ 40,000 to Anil for cash at a profit of 25% on cost less 20% trade discount and paid cartage ₹ 100, which is not to be charged from customer.

Answer:

Journal
Sr. No.
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
(i)
Charity A/c
Dr.
 
500
 
 
To Purchases A/c  
 
500
 
(Goods given as charity)  
 
 
         
(ii) Bank A/c Dr.   25,000  
  Mayank A/c Dr.   75,000  
     To Sales A/c     1,00,000
  (Goods sold partly through cheque and partly through credit)      
 
   
 
 
(iii)
Cash A/c
Dr.
 
975
 
 
Discount Allowed A/c
Dr.
 
25
 
 
To Harikrishna A/c  
 
1,000
 
(Cash received from Harikrishna in full and final settlement)  
 
 
 
   
 
 
(iv)
Cash A/c Dr.  
600
 
 
Bad Debts A/c Dr.  
400
 
 
To Rajan A/c  
 
1,000
 
(First and final dividend received from Rajan in full settlement of his debt)  
 
 
         
(v) Drawings A/c Dr.   1,500  
     To Interest on Drawings A/c     1,500
  (Interest on drawings charged)      
         
(vi) Cash A/c Dr.   40,000  
      To Sales A/c     40,000
  (Goods sold to Anil at 25% profit on cost and 20% Trade Discount)      
         
  Cartage A/c Dr.   100  
       To Cash A/c     100
  (Cartage paid)      
     
 
 

Page No 8.70:

Question 7:

Journalise the following transactions:
 

(a)

(b)
(c)
(d)
(e)
(f)
(g)
Shyam became insolvent. A first and final compensation of 75 paise in a rupee
 was received from his official receiver. He owed a debt of
 Received cash for a bad debt written off last year
 Rent due to landlord
 Depreciation on office furniture
 Salaries due to staff
 Paid income tax
 Received commission â‚¹ 25,000, half of which is in advance
 
₹
50,000
25,000
40,000
5,000
50,000
1,50,000

 

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
(a)
Cash A/c
Dr.
 
37,500
 
 
Bad-Debts A/c
Dr.
 
12,500
 
 
  To Shyam A/c
 
 
 
50,000
 
 (75 paise in a rupee received from Shyam)
 
 
 
 
 
 
 
 
 
 
(b)
Cash A/c
Dr.
 
25,000
 
 
To Bad-Debts Recovered A/c
 
 
 
25,000
 
(Received cash against debts written off as bad earlier)
 
 
 
 
 
 
 
 
 
 
(c)
Rent A/c
Dr.
 
40,000
 
 
  To Rent Outstanding A/c
 
 
 
40,000
 
(Rent due)
 
 
 
 
 
 
 
 
 
 
(d)
Depreciation A/c
Dr.
 
5,000
 
 
  To Office Furniture A/c
 
 
 
5,000
 
(Depreciation on office furniture)
 
 
 
 
 
 
 
 
 
 
(e)
Salary A/c
Dr.
 
50,000
 
 
  To Salary Outstanding A/c
 
 
 
50,000
 
(Salary due)
 
 
 
 
 
 
 
 
 
 
(f)
Drawings A/c
Dr.
 
1,50,000
 
 
  To Cash A/c
 
 
 
1,50,000
 
(Paid income tax)
 
 
 
 
 
 
 
 
 
 
(g)
Cash A/c
Dr.
 
25,000
 
 
  To Commission A/c
 
 
 
12,500
 
  To Commission Received in Advance A/c
 
 
 
12,500
 
(Commission received, half of which is advance)
 
 
 
 

Page No 8.70:

Question 8:

Journalise the following transactions of Singh Enterprises, Delhi:

2018   ₹
June 1 Started business with cash  50,000
June 2 Deposited cheque from Savings Account in firm's account 2,00,000
June 3 Received cash from Ram 50,000
June 4 Purchased goods for cash 15,000
June 11 Sold goods to M/s. Hari Sales, Delhi 12,000
June 13 Paid to Ramavtar 40,000
June 17 Received from M/s. Hari Sales 10,000
June 20 Bought furniture from S.R. Furnishers against Cash 22,400
June 27 Paid rent 28,000
June 30
 Paid salary
50,000

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2018
 
 
 
 
 
June 01
Cash A/c
Dr.
 
50,000
 
 
  To Capital A/c
 
 
 
50,000
 
(Started business with cash)
 
 
 
 
 
 
 
 
 
 
June 02
Bank A/c
Dr.
 
2,00,000
 
 
  To Capital A/c
 
 
 
2,00,000
 
(Cheque from Savings A/c to Firm’s A/c)
 
 
 
 
 
 
 
 
 
 
June 03
Cash A/c
Dr.
 
50,000
 
 
  To Ram’s A/c
 
 
 
50,000
 
(Received cash)
 
 
 
 
 
 
 
 
 
 
June 04
Purchases A/c
Dr.
 
15,000
 
 
  To Cash A/c
 
 
 
15,000
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
June 11
M/s Hari A/c
Dr.
 
12,000
 
 
  To Sales A/c
 
 
 
12,000
 
(Goods sold on credit)
 
 
 
 
 
 
 
 
 
 
June 13
Ramavtar’s A/c
Dr.
 
40,000
 
 
  To Cash A/c
 
 
 
40,000
 
(Paid cash to Ramavtar)
 
 
 
 
 
 
 
 
 
 
June 17
Cash A/c
Dr.
 
10,000
 
 
  To M/s Hari A/c
 
 
 
10,000
 
(Received cash from M/s Hari A/c)
 
 
 
 
 
 
 
 
 
 
June 20
Furniture A/c
Dr.
 
20,000
 
 
  To Cash A/c
 
 
 
20,000
 
(Bought furniture for cash)
 
 
 
 
 
 
 
 
 
 
June 27
Rent A/c
Dr.
 
28,000
 
 
  To Cash A/c
 
 
 
28,000
 
(Paid rent)
 
 
 
 
 
 
 
 
 
 
June 30
Salary A/c
Dr.
 
50,000
 
 
  To Cash A/c
 
 
 
50,000
 
(Paid salary)
 
 
 
 



Page No 8.71:

Question 9:

Journalise the following transactions of Rakesh Agencies, Delhi (Proprietor Shri Rakesh):

 
2019   ₹
Jan 1 Rakesh commenced business with cash 50,000
Jan 2 Purchased goods for cash 10,000
Jan 5 Purchased goods from Mohan, Delhi 6,000
Jan 7 Opened bank account with Bank of India 10,000
Jan 10 Purchased furniture for office 2,000
Jan 15 Sold goods for cash 8,000
Jan 20 Sold goods to Ram, Delhi 5,000
Jan 25 Cash sales 3,500
Jan 27 Paid to Mohan on account 3,000
Jan 28 Ram returns goods costing 500
Jan 31 Paid Salaries 9,000
Jan 31 Rejected and returned 10% of goods supplied by Mohan  

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2019
 
 
 
 
 
Jan 01
Cash A/c
Dr.
 
50,000
 
 
  To Capital A/c
 
 
 
50,000
 
(Started business with cash)
 
 
 
 
 
 
 
 
 
 
Jan 02
Purchases A/c
Dr.
 
10,000
 
 
  To Cash A/c
 
 
 
10,000
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
Jan 05
Purchases A/c
Dr.
 
6,000
 
 
  To Mohan A/c
 
 
 
6,000
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
Jan 07
Bank A/c
Dr.
 
10,000
 
 
  To Cash A/c
 
 
 
10,000
 
(Opened Bank A/c)
 
 
 
 
 
 
 
 
 
 
Jan 10
Furniture A/c
Dr.
 
2,000
 
 
  To Cash A/c
 
 
 
2,000
 
(Furniture purchased)
 
 
 
 
 
 
 
 
 
 
Jan 15
Cash A/c
Dr.
 
8,000
 
 
  To Sales A/c
 
 
 
8,000
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
Jan 20
Ram A/c
Dr.
 
5,000
 
 
  To Sales A/c
 
 
 
5,000
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
Jan 25
Cash A/c
Dr.
 
3,500
 
 
  To Sales A/c
 
 
 
3,500
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
Jan 27
Mohan’s A/c
Dr.
 
3,000
 
 
  To Cash A/c
 
 
 
3,000
 
(Paid to Mohan on account)
 
 
 
 
 
 
 
 
 
 
Jan 28
Sales Return A/c
Dr.
 
500
 
 
  To Ram’s A/c
 
 
 
500
 
(Goods returned by Ram)
 
 
 
 
 
 
 
 
 
 
Jan 31
Salary A/c
Dr.
 
9,000
 
 
  To Cash
 
 
 
9,000
 
(Paid salaries)
 
 
 
 
 
 
 
 
 
 
Jan 31
Mohan’s A/c
Dr.
 
600
 
 
  To Purchases Return A/c
 
 
 
600
 
(Returned 10% of the goods supplied by Mohan)
 
 
 
 
 
 
 
 
 
 

Page No 8.71:

Question 10:

Journalise the following transactions of Satish, Noida (UP):
 

2019   ₹
Jan 1  Started business with cash 40,000
Jan 2  Opened Bank Account by cheque from Savings Account 60,000
Jan 3  Bought goods from M/s. S. Singh & Co., Delhi 20,000
Jan 4  Introduced additional capital by cheque 5,000
Jan 4  Purchased computer against cheque from Computer Mart, Noida 15,000
Jan 6  Paid for postage stamps 150
Jan 8  Sold goods for cash 4,000
Jan 9  Sold goods to M/s Sharda & Co., Delhi 10,000
Jan 15  Paid the due amount to M/s S. Singh & Co. after availing discount of ₹ 400  
Jan 25  Sold goods to M/s Ray & Co., Kolkata 5,600
Jan 27  Received cheque from M/s Sharda & Co. in full settlement of amount due from them 11,000
Jan 31  Paid for electricity charges 1,000
Jan 31  Paid rent of building by cheque. Half of the building is used by the proprietor for residential use. 5,000
Jan 31  Drew for personal use 3,500
     

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2019
 
 
 
 
 
Jan 01
Cash A/c
Dr.
 
40,000
 
 
  To Capital A/c
 
 
 
40,000
 
(Started business with cash)
 
 
 
 
 
 
 
 
 
 
Jan 02
Bank A/c
Dr.
 
60,000
 
 
  To Capital A/c
 
 
 
60,000
 
(Cheque from Savings A/c to Firm’s A/c)
 
 
 
 
 
 
 
 
 
 
Jan 03
Purchases A/c
Dr.
 
20,000
 
 
  To M/s S. Singh & Co. A/c
 
 
 
20,000
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
Jan 04
Computer A/c
Dr.
 
15,000
 
 
  To Bank A/c
 
 
 
15,000
 
(Purchased computer)
 
 
 
 
 
 
 
 
 
 
Jan 06
Postage A/c
Dr.
 
150
 
 
  To Cash A/c
 
 
 
150
 
(Paid for postage)
 
 
 
 
 
 
 
 
 
 
Jan 08
Cash A/c
Dr.
 
4,000
 
 
  To Sales A/c
 
 
 
4,000
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
Jan 09
M/s Sharda & Co. A/c
Dr.
 
10,000
 
 
  To Sales A/c
 
 
 
10,000
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
Jan 15
M/s S. Singh & Co. A/c
Dr.
 
20,000
 
 
  To Cash A/c
 
 
 
19,600
 
  To Discount Received A/c
 
 
 
400
 
(Paid to M/s S. Singh & Co.)
 
 
 
 
 
 
 
 
 
 
Jan 25
M/s Ray & Co. A/c
Dr.
 
5,600
 
 
  To Sales A/c
 
 
 
5,600
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
Jan 27
Bank A/c
Dr.
 
10,000
 
 
  To M/s Sharda & Co. A/c
 
 
 
10,000
 
(Received from M/s Sharda & Co.)
 
 
 
 
 
 
 
 
 
 
Jan 31
Electricity Charges A/c
Dr.
 
1,000
 
 
  To Cash A/c
 
 
 
1,000
 
(Paid for electricity charges)
 
 
 
 
 
 
 
 
 
 
Jan 31
Rent A/c
Dr.
 
2,500
 
 
Drawings A/c
Dr.
 
2,500
 
 
  To Cash A/c
 
 
 
5,000
 
(Paid rent for building, half building is occupied by proprietorfor residential purpose)
 
 
 
 
 
 
 
 
 
 
Jan 31
Drawings A/c
Dr.
 
3,500
 
 
  To Cash
 
 
 
3,500
 
(Drawings made by proprietor)
 
 
 
 
 
 
 
 
 
 
Note: There is an error in the question as the amount paid by M/s Sharda & Co. against goods sold can be eaqual to or less than the amount due but not more. Thus, taken to be as â‚¹10,000 instead of â‚¹11,000.



Page No 8.72:

Question 11:

Following are the transactions of R.Singh & Co., Kanpur (UP) for the month of July, 2018. You are required to Journalise them:

2018
July 1
July 1
July 1
July 2
July 5
July 6
July 11
July 12
July 16
July 20
July 23
July 26 
July 28 
July 31
Started business with cash
Cash paid into bank
​Bought stationery of â‚¹ 300 plus CGST and SGST @ 6% each
Bought goods of â‚¹ 21,000 plus CGST and SGST @ 6% each
Sold goods of â‚¹ 7,500 plus CGST and SGST @ 6% each
Bought office furniture of â‚¹ 5,000 plus CGST and SGST @ 6% each from Banerjee Bros.
Sold goods of â‚¹ 10,000 plus CGST and SGST @ 6% each to Mahendra
Received cheque from Mahendra for the amount due
Sold goods of â‚¹ 5,000 plus CGST and SGST @ 6% each to Ramesh & Co.
Bought goods of â‚¹ 20,000 plus IGST @ 12% from S. Seth & Bros., Delhi
Bought goods of â‚¹ 2,250 plus IGST @12 % for cash from S. Narain & Co., Ludhiana (Punjab)
Ramesh & Co. paid on account
Paid to S. Seth & Bros. by cheque in full settlement
Rent is due to S. Sharma but not yet paid.
₹ 80,000
50,000









2,500
22,000
1,000

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2018
 
 
 
 
 
July 01
Cash A/c
Dr.
 
80,000
 
 
  To Capital A/c
 
 
 
80,000
 
(Started business with cash)
 
 
 
 
 
 
 
 
 
 
July 01
Bank A/c
Dr.
 
50,000
 
 
  To Cash A/c
 
 
 
50,000
 
(Cash paid into bank)
 
 
 
 
 
 
 
 
 
 
July 01
Stationery A/c
Dr.
 
300
 
 
Input CGST A/c
Dr.
 
18
 
 
Input SGST A/c
Dr.
 
18
 
 
  To Cash A/c
 
 
 
336
 
(Stationery purchased)
 
 
 
 
 
 
 
 
 
 
July 02
Purchases A/c
Dr.
 
21,000
 
 
Input CGST A/c
Dr.
 
1,260
 
 
Input SGST A/c
Dr.
 
1,260
 
 
  To Cash A/c
 
 
 
23,520
 
(Purchased goods)
 
 
 
 
 
 
 
 
 
 
July 05
Cash A/c
Dr.
 
8,400
 
 
  To Sales A/c
 
 
 
7,500
 
  To Output CGST A/c
 
 
 
450
 
  To Output SGST A/c
 
 
 
450
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
July 06
Furniture A/c
Dr.
 
5,000
 
 
Input CGST A/c
Dr.
 
300
 
 
Input SGST A/c
Dr.
 
300
 
 
  To Banerjee Bros. A/c
 
 
 
5,600
 
(Furniture purchased)
 
 
 
 
 
 
 
 
 
 
July 11
Mahendra A/c
Dr.
 
11,200
 
 
  To Sales A/c
 
 
 
10,000
 
  To Output CGST A/c
 
 
 
600
 
  To Output SGST A/c
 
 
 
600
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
July 12
Cash A/c
Dr.
 
11,200
 
 
  To Mahendra A/c
 
 
 
11,200
 
(Received from Mahendra)
 
 
 
 
 
 
 
 
 
 
July 16
Ramesh & Co. A/c
Dr.
 
5,600
 
 
  To Sales A/c
 
 
 
5,000
 
  To Output CGST A/c
 
 
 
300
 
  To Output SGST A/c
 
 
 
300
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
July 20
Purchases A/c
Dr.
 
20,000
 
 
Input IGST A/c
Dr.
 
2,400
 
 
  To S. Seth & Bros. A/c
 
 
 
22,400
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
July 23
Purchases A/c
Dr.
 
2,250
 
 
Input IGST A/c
Dr.
 
270
 
 
  To Cash A/c
 
 
 
2,520
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
July 26
Cash A/c
Dr.
 
2,500
 
 
  To Ramesh & Co. A/c
 
 
 
2,500
 
(Paid to Ramesh & Co. on account)
 
 
 
 
 
 
 
 
 
 
July 28
S. Seth & Bros. A/c
Dr.
 
22,400
 
 
  To BankA/c
 
 
 
22,000
 
  To Discount Received A/c
 
 
 
400
 
(Paid to S. Seth & Bros., received discount)
 
 
 
 
 
 
 
 
 
 
July 31
Rent A/c
Dr.
 
1,000
 
 
  To Rent Outstanding A/c
 
 
 
1,000
 
(Rent outstanding)
 
 
 
 

Page No 8.72:

Question 12:

Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana (Punjab):

2019   ₹
Jan. 1  Started business with cash 50,000
Jan. 2  Opened a Current Account by personal cheque 3,50,000
Jan. 10  Purchased machinery against cheque 1,00,000
Jan. 15  Paid wages for installation of machinery 2,000
Jan. 20  Purchased timber from Singh & Co., Ludhiana (Punjab) of the list price of ₹ 20,000 at 10% trade discount  
Jan. 25  Out of the above, timber used for furnishing the office 5,000
Jan. 31  Sold timber to Rakesh of the list price of â‚¹ 10,000 and allowed him 10% trade discount  
Feb. 10  Issued to Singh & Co. a cheque in full settlement 20,000
Feb. 15  Received from Rakesh in full and final settlement 10,000
Feb. 20  Paid Wages 15,000
Feb. 28  Issued a cheque for â‚¹ 5,000 in favour of the landlord for rent of February  
     

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.

Answer:

Journal

Date

Particulars

L.F

Debit Amount

(Rs)

Credit Amount

(Rs)

2019

 

 

 

 

Jan.01

Cash A/c

Dr.

 

50,000

 

 

To Capital A/c

 

 

50,000

 

(Started business with Cash)

 

 

 

 

 

 

 

 

Jan.02

Bank A/c

Dr.

 

3,50,000

 

 

To Cash A/c

 

 

3,50,000

 

(Deposited cash into bank )

 

 

 

 

 

 

 

 

Jan.10

Machinery A/c
Input CGST A/c
Input SGST A/c

Dr.

 

1,00,000
6,000
6,000

 

 

To Bank A/c

 

 

1,12,000

 

(Purchased machinery @ 6% CGST and SGST)

 

 

 

 

 

 

 

 

Jan.15

Machinery A/c

Dr.

 

2,000

 

 

To Cash A/c

 

 

2,000

 

(Paid installation charges )

 

 

 

 

 

 

 

 

Jan.20

Purchase A/c
Input CGST A/c
Input SGST A/c

Dr.

 

18,000
1,080
1,080

 

 

To Singh & Co.

 

 

20,160

 

(Purchased timber @ 6% CGST and SGST)

 

 

 

 

 

 

 

 

Jan.25

Furniture A/c

Dr.

 

5,600

 

 

To Purchases A/c
To Input CGST A/c
To Input SGST A/c

 

 

5,000
300
300

 

(Timber used for office furniture and GST reversed)

 

 

 

 

 

 

 

 

Jan.31

Rakesh A/c

Dr.

 

10,080

 

 

To Sales A/c
To Output CGST A/c
To Output SGST A/c

 

 

9,000
540
540

 

(Sold goods to Rakesh @ 6% CGST and SGST)

 

 

 

 

 

 

 

 

Feb.10

Singh & Co.

Dr.

 

20,160

 

 

To Bank A/c

 

 

20,000

 

To Discount Received A/c

 

 

160

 

(Sent cheque to Singh & Co. and discount received)

 

 

 

 

 

 

 

 

Feb.15

Cash A/c

Dr.

 

10,000

 

 

Discount Allowed A/c

Dr.

 

80

 

 

To Rakesh

 

 

10,080

 

(Received Cash from Rakesh and discount allowed)

 

 

 

 

 

 

 

 

Feb.20

Wages A/c

Dr.

 

15,000

 

 

To Cash A/c                                    

 

 

15,000

 

(Paid wages)

 

 

 

 

 

 

 

 

Feb.25

Rent A/c

Dr.

 

5,000

 

 

To Bank A/c

 

 

5,000

 

(Paid rent)

 

 

 

 

 

 

 

 

Note: In the entry dated Feb 10 the amount paid exceeds the amont due to Singh and Co. and in the entry dated Feb 15 the amont received exceeds the amount due from Rakesh. These 2 are not possible. So, the amont paid and received has been assumed.



Page No 8.73:

Question 13:

M/s. Auto Aid, Delhi purchased 500 pieces of car horns @ â‚¹ 200 each less 10% Trade Discount plus IGST @ 12% from M/s Auto Horns, Chandigarh. What is the invoice value?

Answer:

List Price (500×200)
1,00,000
  Less: Trade Discount @ 10%
10,000
Value of Goods
90,000
  Add: IGST @ 12%
10,800
Invoice Value
1,00,800

Page No 8.73:

Question 14:

M/s. Vaish Traders, Delhi purchased 500 Parker Pens @ â‚¹ 200 each less Trade Discount @ 15% from Luxor Pens Ltd., Delhi. CGST and SGST was levied @ 6% each. Further, Cash Discount was allowed @ 5% as the payment was made within specified time. What will be the amount of trade discount and cash discount?

Answer:

List Price (500×200)
1,00,000
  Less: Trade Discount @ 15%
15,000
Value of Goods
85,000
  Add: CGST @ 6%
5,100
  Add: SGST @ 6%
5,100
Invoice Value
95,200
  Less: Cash Discount @ 5%
4,760
Amount Payable
90,440

Page No 8.73:

Question 15:

M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at â‚¹ 100 each plus IGST @ 12% from M/s G.S., Auto, Ghaziabad, (UP). Trade terms settled were: Trade Discount will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.

Answer:

List Price (500×100)
50,000
Less: Trade Discount @ 10%
5,000
Value of Goods
45,000

Note: No cash discount will be allowed as the payment is received after the stipulated time period of 7 days.

Page No 8.73:

Question 16:

Name the accounts to be credited along with the amount for payment to Ajay of â‚¹ 4,800 by cheque in full settlement of â‚¹ 5,000.

 

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Ajay A/c
Dr.
 
5,000
 
 
  To Bank A/c
 
 
 
4,800
 
  To Discount Received A/c
 
 
 
200
 
(Paid to Ajay in full and final settlement)
 
 
 
 

Page No 8.73:

Question 17:

Pass Journal entry for sale of goods by Rahul, Delhi to Anish, Delhi for â‚¹ 10,000 less 10% Trade Discount and 2% Cash Discount. Assume payment is received at the time of sale. CGST and SGST is levied @ 6% each.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Cash A/c
Dr.
 
9,878
 
 
Discount Allowed A/c
Dr.
 
202
 
 
  To Sales A/c
 
 
 
9,000
 
  To Output CGST A/c
 
 
 
540
 
  To Output SGST A/c
 
 
 
540
 
(Goods sold and discount allowed)
 
 
 
 
 
 
 
 
 
 

Working Notes:
List Price
10,000
  Less: Trade Discount @ 10%
10,000
Value of Goods
9,000
  Add: CGST @ 6%
540
  Add: SGST @ 6%
540
Invoice Value
10,080
  Less: Cash Discount @ 2%
202
Amount Received
9,878

Page No 8.73:

Question 18:

Pass Journal entry for purchase of goods by Amrit, Delhi from Ayur Products, Agra, (UP) for â‚¹ 25,000 less Trade Discount @ 15% plus IGST @ 12%.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Purchases A/c
Dr.
 
21,250
 
 
Input IGST A/c
Dr.
 
2,550
 
 
  To Ayur Products A/c
 
 
 
23,800
 
(Goods purchased on credit)
 
 
 
 
 
 
 
 
 
 

Working Notes:
List Price
25,000
  Less: Trade Discount @ 15%
3,750
Value of Goods
21,250
  Add: IGST @ 12%
2,550
Amount Payable
23,800

Page No 8.73:

Question 19:

Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for â‚¹ 15,000 less Trade Discount 10% and Cash Discount 3%. CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Purchases A/c
Dr.
 
13,500
 
 
Input CGST A/c
Dr.
 
810
 
 
Input SGST A/c
Dr.
 
810
 
 
  To Cash A/c
 
 
 
14,666
 
  To Discount Received A/c
 
 
 
454
 
(Goods purchased and discount received)
 
 
 
 
 
 
 
 
 
 

Working Notes:
List Price
15,000
Less: Trade Discount @ 10%
1,500
Value of Goods
13,500
Add: CGST @ 6%
810
Add: SGST @ 6%
810
Invoice Value
15,120
Less: Cash Discount @ 3%
454
Amount Paid
14,666

Page No 8.73:

Question 20:

Mittal Cycles purchased 100 cycles from Hero Cycles, Ludhina (Punjab) @ ₹ 1,200 per cycle plus IGST @ 12%. Hero Cycles allowed 10% Trade Discount and 3% Cash Discount if payment is made within 14 days. Mittal Cycles received 10 cycles damaged during transit, which it returned. Mittal Cycles settled the payment in 10 days time.
​Pass Journal entries for the above transactions.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Purchases A/c
Dr.
 
1,08,000
 
 
Input IGST A/c
Dr.
 
12,960
 
 
  To Hero Cycles A/c
 
 
 
1,20,960
 
(Goods purchased @ 10% trade discount)
 
 
 
 
 
 
 
 
 
 
 
Hero Cycles A/c
Dr.
 
12,096
 
 
  To Purchases Return A/c
 
 
 
10,800
 
  To Input IGST A/c
 
 
 
1,296
 
(Returned 10 cycles)
 
 
 
 
 
 
 
 
 
 
 
Hero Cycles A/c
Dr.
 
1,08,864
 
 
  To Cash A/c
 
 
 
1,05,598
 
  To Discount Received A/c
 
 
 
3,266
 
(Balance paid and received cash discount of 3%)
 
 
 
 
 
 
 
 
 
 

Page No 8.73:

Question 21:

Oswal Woollen Mills, Amritsar (Punjab) sold shawls to Gupta Shawls, Jaipur as per details:
Sold 100 shawls @ â‚¹ 200 per shawl on 4th January, 2019, IGST is levied @ 12%. Trade Discount 25% and Cash Discount 5% if full payment is made within 14 days. Gupta Shawls sent 50% of the payment on 14th January, 2019 and balance payment on 10th February, 2019. Pass Journal entries.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2019          
Jan 04
Gupta Shawls A/c
Dr.
 
16,800
 
 
  To Sales A/c
 
 
 
15,000
 
  To Output IGST A/c
 
 
 
1,800
 
(Goods sold @ 25% trade discount)
 
 
 
 
 
 
 
 
 
 
Jan 14
Cash A/c
Dr.
 
8,400
 
 
  To Gupta Shawls A/c
 
 
 
8,400
 
(50% payment received)
 
 
 
 
 
 
 
 
 
 
Feb 10
Cash A/c
Dr.
 
8,400
 
 
  To Gupta Shawls A/c
 
 
 
8,400
 
(Balance 50% payment received)
 
 
 
 
 
 
 
 
 
 



Page No 8.74:

Question 22:

Journalise the following transactions in the books of Ashok:
(i)   Received â‚¹ 11,700 from Hari Krishan in full settlement of his account for â‚¹ 12,000.
(ii)  Received â‚¹ 11,700 from Shyam on his account for ₹ 12,000.
(iii) Received a first and final dividend of 70 paise in the rupee from the official receiver of Rajagopal who owed us â‚¹ 7,000.
(iv) Paid â‚¹ 2,880 to A.K. Mandal in full settlement of his account for â‚¹ 3,000.
(v)  Paid â‚¹ 2,880 to S.K. Gupta on his account for â€‹â‚¹ 3,000.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
(i)
Cash A/c
Dr.
 
11,700
 
 
Discount Allowed A/c
Dr.
 
300
 
 
  To Hari Krishan’s A/c
 
 
 
12,000
 
(Received in full settlement)
 
 
 
 
 
 
 
 
 
 
(ii)
Cash A/c
Dr.
 
11,700
 
 
  To Shyam’s A/c
 
 
 
11,700
 
(Received from Shyam on account)
 
 
 
 
 
 
 
 
 
 
(iii)
Cash A/c
Dr.
 
4,900
 
 
Bad Debts A/c
Dr.
 
2,100
 
 
  To Rajagopal’s A/c
 
 
 
7,000
 
(Received 70 paise in a rupee from Rajagopal)
 
 
 
 
 
 
 
 
 
 
(iv)
A.K. Mandal’s A/c
Dr.
 
3,000
 
 
  To Cash A/c 
 
 
 
2,880
 
  To Discount Received A/c
 
 
 
120
 
(Paid in full settlement)
 
 
 
 
 
 
 
 
 
 
(v)
S.K. Gupta’s A/c
Dr.
 
2,880
 
 
  To Cash A/c
 
 
 
2,880
 
(Paid on account to S.K. Gupta)
 
 
 
 
 
 
 
 
 
 

Page No 8.74:

Question 23:

Enter the following transactions in the Journal of Suresh, Delhi who trades in ready-made garments:
 

2019   ₹
April 1  Suresh paid into bank as Capital* 60,000
April 2  He bought goods and paid by cheque 24,000
April 3   Sold goods to Mukand & Co., Delhi 6,700
April 4  Sold goods for cash 10,900
April 5  Paid sundry expenses in cash* 3,000
April 8  Paid for office furniture and fittings by cheque  4,000
April 9  Bought goods from Ramesh & Bros., Faridabad (Haryana) 10,600
April 11  Returned goods to Ramesh & Bros. 1,500
April 12  Issued cheque to Ramesh & Bros. in full settlement* 9,500
April 30  Bank charged interest* 200
April 30  Borrowed from Ridhi @ 10% per annum interest* 50,000
April 30  Received from Mahendra on account* 6,000
April 30  Sold household furniture and paid the amount into business* 2,000
April 30  Sold goods costing â‚¹ 5,000 to Anita for cash at a profit of 20% on cost, less 20% trade discount  
April 30  Sold goods costing ₹ 20,000 to Sunil at a profit of 20% on sale less 20% Trade Discount and paid cartage ₹ 150 (to be charged from customer).  
     

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase. Out of the above, transactions marked with (*) are not subject to levy of GST.

Answer:

Books of Suresh
Journal
Date
Particulars
L.F.
Debit Amount
(₹)
Credit Amount
(₹)
2019
       
April 01
Bank A/c
Dr.
 
60,000
 
     To Capital A/c    
60,000
  (Paid into Bank as Capital)      
         
April 02
Purchases A/c
Dr.
 
24,000
 
  Input CGST A/c
Dr.
 
1,440
 
  Input SGST A/c
Dr.
 
1,440
 
     To Bank A/c    
26,880
  (Bought goods for cheque @ 6% CGST and SGST)      
         
April 03
Mukand & Co.
Dr.
 
7,504
 
     To Sales A/c    
6,700
   To Output CGST A/c    
402
   To Output SGST A/c    
402
  (Sold Goods to Mukand & Co. @ 6% CGST and SGST)      
         
April 04
Cash A/c
Dr.
 
12,208
 
     To Sales A/c    
10,900
   To Output CGST A/c    
654
   To Output SGST A/c    
654
  (Sold goods for Cash @ 6% CGST and SGST)      
         
April 05
Sundry Expenses A/c
Dr.
 
3,000
 
     To Cash A/c    
3,000
  (Paid Sundry Expenses)      
         
April 08
Furniture A/c
Dr.
 
4,000
 
     To Bank A/c    
4,000
  (Bought Office furniture by cheque)      
         
April 09 Purchases A/c
Dr.
 
10,600
1,272
 
Input IGST A/c
Dr.
     To Ramesh and Bros.    
11,872
  (Bought goods from Ramesh and Bros. @ 12% IGST)      
         
April 11
Ramesh and Bros.
Dr.
 
1,680
 
     To Purchase Return A/c
   To Input IGST A/c
   
1,500
180
  (Good returned to Ramesh and Bros. and IGST @12% reversed)      
         
April 12
Ramesh Bros. A/c
Dr.
 
10,192
 
     To Bank A/c    
9,500
     To Discount Received A/c    
692
  (Cheque sent to Ramesh and Bros. and discount received)      
         
April 30
Interest A/c
Dr.
 
200
 
      To Bank A/c    
200
  (Bank charged Interest)      
         
April 30
Cash A/c
Dr.
 
50,000
 
       To Loan from Ridhi A/c    
50,000
  (Borrowed from Ridhi @10% per annum)      
         
April 30
Cash A/c
Dr.
 
6,000
 
      To Mahendra    
6,000
  (Received from Mahendra on account)      
         
April 30
Cash A/c
Dr.
 
2,000
 
      To Capital A/c    
2,000
  (Sold household furniture and paid the amount into business)      
         
April 30
Cash A/c Dr.  
5,376
 
      To Sales A/c    
4,800
      To Output CGST A/c    
288
      To Output SGST A/c    
288
  (Sold goods for Cash @ 6% CGST and SGST)      
         
April 30
Sunil Dr.  
22,550
 
        To Sales A/c    
20,000
        To Output CGST A/c    
1,200
        To Output SGST A/c    
1,200
        To Cartage A/c    
150
  (Sold goods to Anil @ 6% CGST and SGST and cartage charges levied; profit on sales is 20% i.e. profit on cost is 25%)      

Page No 8.74:

Question 24:

Journalise the following transactions:

2019  
April 1 Paid into bank â‚¹ 21,000 for opening a Current Account.
April 2 Withdrew for personal expenses â‚¹ 5,000.
April 4 Withdrew from bank â‚¹ 3,000.
April 5 Placed an amount in Fixed Deposit at Bank by transfer from Current Account â‚¹ 5,000.
April 10 Received a cheque from Shiv & Co. to whom goods were sold for â‚¹ 3,000 last year. Allowed him 2% discount.
April 14  Shiv & Co.'s cheque deposited into bank.
April 16  Shiv & Co.'s cheque dishonoured (Bank charges â‚¹ 10)
April 17
 Shiv & Co. settled his account by means of a cheque for â‚¹ 3,000, â‚¹ 40 being interest charged.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
2019
 
 
 
 
 
Apr 01
Bank A/c
Dr.
 
21,000
 
 
  To Cash A/c
 
 
 
21,000
 
(Paid into bank for opening a Current A/c)
 
 
 
 
 
 
 
 
 
 
Apr 02
Drawings A/c
Dr.
 
5,000
 
 
  To Cash A/c
 
 
 
5,000
 
(Withdrew for private expenses)
 
 
 
 
 
 
 
 
 
 
Apr 04
Cash A/c
Dr.
 
3,000
 
 
  To Bank A/c
 
 
 
3,000
 
(Withdrew from bank for office use)
 
 
 
 
 
 
 
 
 
 
Apr 5
Fixed Deposit A/c
Dr.
 
5,000
 
 
  To Bank A/c
 
 
 
5,000
 
(Placed on FD by transfer from Current A/c)
 
 
 
 
 
 
 
 
 
 
Apr 10
Cheques in Hand A/c
Dr.
 
2,940
 
 
Discount Allowed A/c
Dr.
 
60
 
 
  To Shiv & Co. A/c
 
 
 
3,000
 
(Received from Shiv & Co. and allowed 2% discount)
 
 
 
 
 
 
 
 
 
 
Apr 14
Bank A/c
Dr.
 
2,940
 
 
  To Cheques in Hand A/c
 
 
 
2,940
 
(Shiv & Co.’s cheque banked)
 
 
 
 
 
 
 
 
 
 
Apr 16
Shiv & Co. A/c
Dr.
 
2,950
 
 
  To Bank A/c
 
 
 
2,950
 
(Shiv & Co.’s cheque dishonoured)
 
 
 
 
 
 
 
 
 
 
Apr 17
Bank A/c
Dr.
 
3,000
 
 
  To Shiv & Co. A/c
 
 
 
2,950
    To Interest A/c       50
 
(Shiv & Co. settled his account)
 
 
 
 
 
 
 
 
 
 

Note for Apr 17: Cheque of Rs 2,940 dishonoured. Bank charged Rs 10 (to be recovered from Shiv & Co.). Total due from Shiv & Co. Rs 2,950. New cheque received for Rs 3,000, so interest charged should be Rs 50 (not Rs 40, as given in the book).



Page No 8.75:

Question 25:

Journalise the following in the books of Amit Saini, Gurugram (Haryana):
(i) Goods of â‚¹ 5,000 were taken by him for personal use.
(ii) ₹ 2,000 due from Sohan were bad debts.
(iii) Goods of â‚¹ 6,000 were destroyed by fire and were not insured.
(iv) Paid â‚¹ 4,000 in cash as wages on installation of machine. (GST is not to be levied).
(v) Sold goods to Arjun of Delhi of list price â‚¹ 20,000. Trade discount @ 10% and cash discount of 5% was allowed. He paid the amount on the same day and availed the cash discount.
(vi) Received ₹ 2,000 from Ramesh, whose account was written off as bad debts.
(vii) Goods costing ₹ 1,000 given as charity.
(viii) Received â‚¹ 9,750 from Ramesh in full settlement of his account of â‚¹ 10,000.
(ix) Paid rent in advance â‚¹ 4,000.
​CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
(i)
Drawings A/c
Dr.
 
5,600
 
 
  To Purchases A/c
 
 
 
5,000
 
  To Input CGST A/c
 
 
 
300
 
  To Input SGST A/c
 
 
 
300
 
(Goods used for personal use)
 
 
 
 
 
 
 
 
 
 
(ii)
Bad Debts A/c
Dr.
 
2,000
 
 
  To Sohan’s A/c
 
 
 
2,000
 
(Debtors proved bad)
 
 
 
 
 
 
 
 
 
 
(iii)
Loss of Stock by Fire A/c
Dr.
 
6,720
 
 
  To Purchases A/c
 
 
 
6,000
 
  To Input CGST A/c
 
 
 
360
 
  To Input SGST A/c
 
 
 
360
 
(Uninsured goods lost by fire)
 
 
 
 
 
 
 
 
 
 
(iv)
Machine A/c
Dr.
 
4,000
 
 
  To Cash A/c
 
 
 
4,000
 
(Wages paid for installation of machine)
 
 
 
 
 
 
 
 
 
 
(v)
Cash A/c
Dr.
 
19,152
 
 
Discount Allowed A/c
Dr.
 
1,008
 
 
  To Sales A/c
 
 
 
18,000
 
  To Output IGST A/c
 
 
 
2,160
 
(Goods sold and discount allowed)
 
 
 
 
 
 
 
 
 
 
(vi)
Cash A/c
Dr.
 
2,000
 
 
To Bad Debts Recovered A/c
 
 
 
2,000
 
(Ramesh's debt written-off previously recovered)
 
 
 
 
 
 
 
 
 
 
(vii)
Charity A/c
Dr.
 
2,200
 
 
  To Purchases A/c
 
 
 
1,000
 
  To Input CGST A/c
 
 
 
600
 
  To Input SGST A/c
 
 
 
600
 
(Goods given as charity)
 
 
 
 
 
 
 
 
 
 
(viii)
Cash A/c
Dr.
 
9,750
 
 
Discount Allowed A/c
Dr.
 
250
 
 
  To Ramesh’s A/c
 
 
 
10,000
 
(Received from Ramesh in full settlement)
 
 
 
 
 
 
 
 
 
 
(ix)
Prepaid Rent A/c
Dr.
 
4,000
 
 
  To Cash A/c
 
 
 
4,000
 
(Paid rent in advance)
 
 
 
 
 
 
 
 
 
 

Page No 8.75:

Question 26:

Journalise the following transactions in the books of Mohan, Delhi:
(i) Raj of Alwar, Rajasthan who owed Mohan ₹ 25,000 became insolvent and received 60 paise in a rupee as full and final settlement.
(ii)  Mohan owes to his landlord â‚¹ 10,000 as rent.
(iii) Charge depreciation of 10% on furniture costing â‚¹ 50,000.
(iv) Salaries due to employees â‚¹ 20,000.
(v)  Sold to Sunil goods in cash of â‚¹ 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net of â‚¹ 8,500.
(vi) Provided interest on capital of â‚¹ 1,00,000 @ 10% per annum.
(vii) Goods lost in theft ₹ 5,000, which were purchased paying IGST @ 12% from Alwar, Rajasthan.
[Hint:]                         

(vii) Loss of Stock by Theft A/c ... Dr. ₹ 5,600  
  To Purchase A/c       â‚¹ 5,000
  To Input IGST A/c       â‚¹ 600
​

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
(i)
Cash A/c
Dr.
 
15,000
 
 
Bad-Debts A/c
Dr.
 
10,000
 
 
  To Raj’s A/c
 
 
 
25,000
 
(Received 60 paise in full and final settlement)
 
 
 
 
 
 
 
 
 
 
(ii)
Rent A/c
Dr.
 
10,000
 
 
  To Rent Outstanding A/c
 
 
 
10,000
 
(Owed rent to landlord)
 
 
 
 
 
 
 
 
 
 
(iii)
Depreciation A/c
Dr.
 
5,000
 
 
  To Furniture A/c
 
 
 
5,000
 
(10% depreciation charged on furniture)
 
 
 
 
 
 
 
 
 
 
(iv)
Salaries A/c
Dr.
 
20,000
 
 
  To Salaries Outstanding A/c
 
 
 
20,000
 
(Salaries due to employees)
 
 
 
 
 
 
 
 
 
 
(v)
Cash A/c
Dr.
 
8,500
 
 
Discount Allowed A/c
Dr.
 
1,580
 
 
  To Sales A/c
 
 
 
9,000
 
  To Output CGST A/c
 
 
 
540
 
  To Output SGST A/c
 
 
 
540
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
(vi)
Interest on Capital A/c
Dr.
 
10,000
 
 
  To Capital A/c
 
 
 
10,000
 
(Interest on capital allowed @ 10% p.a.)
 
 
 
 
 
 
 
 
 
 
(vii)
Loss of Stock by Theft A/c
Dr.
 
5,600
 
 
  To Purchases A/c
 
 
 
5,000
 
  To Input IGST A/c
 
 
 
600
 
(Goods lost by theft)
 
 
 
 
 
 
 
 
 
 

Page No 8.75:

Question 27:

Pass Journal entries in the books of Puneet, Delhi for the following:
(i) Received an order from Karan & Co. for supply of goods of ₹ 50,000.
(ii) Received an order from AK & Co. for goods of â‚¹ 1,00,000 along with a cheque for â‚¹ 25,000 as advance.
(iii) Paid to staff â‚¹ 40,000 against outstanding salary of â‚¹ 60,000.
(iv) Sold goods to Bharat, Kaithal (Haryana) of â‚¹ 10,000 plus IGST @ 12% out of which 1/5th were returned being defective.
(v) Cheque of â‚¹ 20,000 issued by Feroz was dishonoured.
(vi) Received 40 paise in a rupee from Feroz against the above dues.
(vii) Received a cheque of â‚¹ 25,000 from Mohan after banking hours.
(viii) Purchased goods from Barun of Chandigarh of â‚¹ 10,000 plus IGST @ 12% and sold them to Arun of Shimla (HP) at â‚¹ 22,400, including IGST @ 12%.
(ix) Arun returned goods of â‚¹ 6,720, including IGST which were returned to Barun.
(x) ABC & Co. purchased 10 TV sets @ ₹ 20,000 per set and paid IGST @ 12%. It sold all the sets @ ₹ 25,000 per set plus CGST and SGST @ 6% each.
(xi) Paid insurance of â‚¹ 12,000 plus CGST and SGST @ 6% each for a period of one year.
(xii) Sold personal car for â‚¹ 1,00,000 and invested the amount in the firm.
(xiii) Goods costing â‚¹ 1,00,000 were destroyed in fire. Insurance company admitted the claim for â‚¹ 75,000. These goods were purchased within Delhi.
(xiv) Purchased machinery for â‚¹ 56,000 including IGST of â‚¹ 6,000 and paid cartage thereon â‚¹ 5,000 and installation charges â‚¹ 10,000.
(xv) Goods costing â‚¹ 40,000 sold to Mr. X at a profit of 20% on sales less 10% Trade Discount plus CGST and SGST @ 6% each and received a cheque under 2% cash discount.
(xvi) Purchased machinery from New Machinery House for â‚¹ 50,000 and paid it by means of a bank draft purchased from bank. Paid charges â€‹â‚¹ 500.

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
(i)
No Entry
 
 
 
 
 
 
 
 
 
 
(ii)
Cash A/c
Dr.
 
25,000
 
 
  To Advance from Ak & Co.
 
 
 
25,000
 
(Advance received for order)
 
 
 
 
 
 
 
 
 
 
(iii)
Outstanding Salary A/c
Dr.
 
40,000
 
 
  To Cash A/c
 
 
 
40,000
 
(Payment of outstanding salaries)
 
 
 
 
 
 
 
 
 
 
(iv)
Bharat’s A/c
Dr.
 
11,200
 
 
  To Sales A/c
 
 
 
10,000
 
  To Output IGST A/c
 
 
 
1,200
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
 
Sales Return A/c
Dr.
 
2,000
 
 
Output IGST A/c
Dr.
 
240
 
 
  To Bharat’s A/c
 
 
 
2,240
 
(1/5th goods returned by Bharat)
 
 
 
 
 
 
 
 
 
 
(v)
Feroz’s A/c
Dr.
 
20,000
 
 
  To Bank A/c
 
 
 
20,000
 
(Cheque issued by Feroz dishonoured)
 
 
 
 
 
 
 
 
 
 
(vi)
Cash A/c
Dr.
 
8,000
 
 
Bad Debts A/c
Dr.
 
12,000
 
 
  To Feroz’s A/c
 
 
 
20,000
 
(Received 40 paise in a rupee as full and final settlement from Feroz)
 
 
 
 
 
 
 
 
 
 
(vii)
Cheque in Hand A/c
Dr.
 
25,000
 
 
  To Mohan’s A/c
 
 
 
25,000
 
(Received cheque from Mohan)
 
 
 
 
 
 
 
 
 
 
(viii)
Purchases A/c
Dr.
 
10,000
 
 
Input IGST A/c
Dr.
 
1,200
 
 
  To Barun’s A/c
 
 
 
11,200
 
(Goods purchased)
 
 
 
 
 
 
 
 
 
 
 
Arun’s A/c
Dr.
 
22,400
 
 
  To Sales A/c
 
 
 
20,000
 
  To Output IGST A/c
 
 
 
2,400
 
(Goods sold)
 
 
 
 
 
 
 
 
 
 
(ix)
Sales Return A/c
Dr.
 
6,000
 
 
Output IGST A/c
Dr.
 
720
 
 
  To Arun’s A/c
 
 
 
6,720
 
(Goods returned by Arun)
 
 
 
 
 
 
 
 
 
 
 
Barun’s A/c
Dr.
 
6,720
 
 
  To Purchases Return A/c
 
 
 
6,000
 
  To Input IGST A/c
 
 
 
720
 
(Goods returned to Barun)
 
 
 
 
 
 
 
 
 
 
(x)
TV A/c
Dr.
 
2,00,000
 
 
Input IGST A/c
Dr.
 
24,000
 
 
  To Cash A/c
 
 
 
2,24,000
 
(TV purchased)
 
 
 
 
 
 
 
 
 
 
 
Cash A/c
Dr.
 
2,80,000
 
 
  To TV A/c
 
 
 
2,00,000
 
  To Profit on Sale of TV A/c
 
 
 
50,000
 
  To Output CGST A/c
 
 
 
15,000
 
  To Output SGST A/c
 
 
 
15,000
 
(TV sold)
 
 
 
 
 
 
 
 
 
 
(xi)
Insurance A/c
Dr.
 
12,000
 
 
Input CGST A/c
Dr.
 
720
 
 
Input SGST A/c
Dr.
 
720
 
 
  To Cash A/c
 
 
 
13,440
 
(Paid insurance)
 
 
 
 
 
 
 
 
 
 
(xii)
Cash A/c
Dr.
 
1,00,000
 
 
  To Capital A/c
 
 
 
1,00,000
 
(Sold personal car and invested the proceeds into business)
 
 
 
 
 
 
 
 
 
 
(xiii)
Insurance Company A/c
Dr.
 
1,12,000
 
 
  To Purchases A/c
 
 
 
1,00,000
 
  To Input CGST A/c
 
 
 
6,000
 
  To Input SGST A/c
 
 
 
6,000
 
(Claim lodged with insurance company, including CGST and SGST)
 
 
 
 
 
 
 
 
 
 
 
Bank A/c
Dr.
 
75,000
 
 
Loss of Stock by Fire A/c
Dr.
 
37,000
 
 
  To Insurance Company A/c
 
 
 
1,12,000
 
 
 
 
 
 
(xiv)
Machinery A/c
Dr.
 
65,000
 
 
Input IGST A/c
Dr.
 
6,000
 
 
  To Cash A/c
 
 
 
71,000
 
(Purchased machinery)
 
 
 
 
 
 
 
 
 
 
(xv)
Bank A/c
Dr.
 
47,416
 
 
Discount Allowed A/c
Dr.
 
968
 
 
  To Sales A/c
 
 
 
43,200
 
  To Output CGST A/c
 
 
 
2,592
 
  To Output SGST A/c
 
 
 
2,592
 
(Goods sold @ 10% trade discount, 2% cash discount)
 
 
 
 
 
 
 
 
 
 
(xvi)
Machinery A/c
Dr.
 
50,000
 
 
Bank Charges A/c
Dr.
 
500
 
 
  To Bank A/c
 
 
 
50,500
 
(Purchased machinery and paid by band draft)
 
 
 
 
 
 
 
 
 
 



Page No 8.76:

Question 28:

D.Chadha, Delhi commenced business on 1st January, 2019. His transactions for the month are given below. Journalise them. He will close his books on 31st March each year.
 

2019   ₹
Jan.  1 Commenced business with Cash 25,000
Jan.  2 Opened Bank Account with cheque from his Savings Account 2,25,000
Jan.  3 Bought goods from Ramesh & Co., Delhi, plus CGST and SGST @ 6% each 54,000
Jan.  3 Sold goods to Rajesh of ₹ 60,000, charged CGST and SGST @ 6% each  
Jan.  7 Bought goods from Rahul, Chennal, plus IGST @ 12% 65,000
Jan.  8 Paid wages in cash (GST not levied) 8,000
Jan.  8 Sold goods to Mahesh, Kochi of ₹ 60,000; charged IGST @ 12%  
Jan.  10 Received cheque from Rajesh (Discount allowed ₹ 1,200) 66,000
Jan.  11 Paid to Ramesh & Co. (Discount received â‚¹ 2,700) 51,300
Jan.  12 Paid rent @ ₹ 15,000 per month for three months up to March, plus CGST and SGST @ 6% each  
Jan.  15 Paid office expenses in cash  700
Jan.  21 Sold to Rakesh, Delhi goods of ₹ 25,000, charged CGST and SGST @ 6% each  
Jan.  22 Paid office expenses in cash 500
Jan.  22 Paid to Rahul by cheque (discount ₹ 3,200) 61,300
Jan.  25 Received cheque from Mahesh Kochi (discount â‚¹ 1,500) 65,700
Jan.  27 Rakesh, Delhi returned goods (being not as per sample) 2,000
Jan.  31 Paid salaries for the month 20,000

Answer:

Books of D. Chadha

Journal

Date

Particulars

L.F.

Debit Amount

(₹)

Credit Amount

(₹)

2019

 

 

 

 

Jan.01

Cash A/c

Dr.

 

25,000

 

 

To Capital A/c

 

 

25,000

 

(Started business with Cash)

 

 

 

 

 

 

 

 

Jan.02

Bank A/c

Dr.

 

2,25,000

 

 

To Cash A/c

 

 

2,25,000

 

(Opened Bank Account with his Savings Bank Account Cheque)

 

 

 

 

 

 

 

 

Jan.03

Purchases A/c
Input CGST A/c
Input SGST A/c

Dr.
Dr.
Dr.

 

54,000
3,240
3,240

 

 

To Ramesh & Co

 

 

60,480

 

(Bought goods from Ramesh & Co @ 6% CGST and SGST)

 

 

 

 

 

 

 

 

Jan.03

Rajesh

Dr.

 

67,200

 

 

To Sales A/c
To Output CGST A/c
To Output SGST A/c

 

 

60,000
3,600
3,600

 

(Sold goods to Rajesh @ 6% CGST and SGST)

 

 

 

 

 

 

 

 

Jan.07

Purchases A/c
Input IGST A/c

Dr.
Dr.

 

65,000
7,800

 

 

To Rahul

 

 

72,800

 

(Bought goods from Rahul @ 12% IGST)

 

 

 

 

 

 

 

 

Jan.08

Wages A/c

Dr.

 

800

 

 

To Cash A/c

 

 

800

 

(Paid Wages)

 

 

 

 

 

 

 

 

Jan.08

Mahesh

Dr.

 

67,200

 

 

To Sales A/c
To Output IGST A/c

 

 

60,000
7,200

 

(Sold goods to Mahesh @ 12% IGST)

 

 

 

 

 

 

 

 

Jan.10

Bank A/c

Dr.

 

66,000

 

 

Discount Allowed A/c

Dr.

 

1,200

 

 

To Rajesh

 

 

67,200

 

(Received cheque from Rajesh and discount allowed)

 

 

 

 

 

 

 

 

Jan.11

Ramesh & Co

Dr.

 

54,000

 

 

To Cash A/c

 

 

51,300

 

To Discount Received

 

 

2,700

 

(Paid to Ramesh & Co and Discount Received)

 

 

 

 

 

 

 

 

Jan.12

Prepaid Rent A/c
Input CGST A/c
Input SGST A/c

Dr.
Dr.
Dr.

 

15,000
900
900

 

 

To Cash A/c

 

 

16,800

 

(Paid rent in advance upto March plus 6% CGST and SGST)

 

 

 

         

Jan 15

Expenses A/c

Dr.

 

700

 

 

To Cash A/c

 

 

700

 

(Paid office expenses in cash)

 

 

 

 

 

 

 

 

Jan.21

 Rakesh

Dr.

 

28,000

 

 

To Sales A/c
To Output CGST A/c
To Output SGST A/c

 

 

25,000
1,500
1,500

 

(Sold goods to  Rakesh)

 

 

 

 

 

 

 

 

Jan.22

Expenses A/c

Dr.

 

500

 

 

To Cash A/c

 

 

500

 

(Paid office expenses)

 

 

 

 

 

 

 

 

Jan.22

Rahul

Dr.

 

64,500

 

 

To Bank A/c

 

 

61,300

 

To Discount Received A/c

 

 

3,200

 

(Paid to Rahul and discount received)

 

 

 

 

 

 

 

 

Jan.25

Bank A/c

Dr.

 

65,700

 

 

Discount Allowed A/c

Dr.

 

1,500

 

 

To Mahesh 

 

 

67,200

 

(Received Cheque from Mahesh, Kochi and discount allowed)

 

 

 

 

 

 

 

 

Jan.27

Sales Return A/c
Output CGST A/c
Output SGST A/c

Dr.
Dr.
Dr.

 

2,000
120
120

 

 

To  Rakesh

 

 

2,240

 

(Goods returned by Rakesh and GST @ 6% reversed)

 

 

 

         

Jan 31

Salaries A/c

Dr.

 

20,000

 

 

To Cash A/c

 

 

20,000

 

(Paid office expenses and salaries in cash)

 

 

 

 

 

 

 

 

 

Page No 8.76:

Question 29:

Journalise the following transactions in the books of Manoj Store:
(i) Purchased goods from Ramesh ₹ 20,000 less Trade Discount at 20% plus IGST @ 12% .
(ii) Sold goods costing ₹ 7,000 to Krishna for  â‚¹ 9,000 plus IGST @ 12%.
(iii) Sold goods for ₹ 10,000 and charged IGST @ 12% against cheque.
(iv) ₹ 5,000 were deposited into Savings Account.
(v) Machinery costing ₹ 4,00,000 for which order was placed earlier paying advance of ₹ 40,000. The balance amount was paid as follows:
    (a) An old machine (personal) valued at ₹ 30,000 was given in exchange;
    (b) Issued a cheque from his savings account for ₹ 1,30,000; and 
    (c) Balance by issue cheque from firm's bank account.
(vi) Paid wages ₹ 2,500 for installation of machine.

Answer:

Books of Manoj Store

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(i)

Purchases A/c

Dr.

 

18,000

 

 

Input IGST A/c

Dr.

 

2,160

 

 

 

To Ramesh’s A/c

 

 

 

20,160

 

(Goods purchased from Ramesh at 20% trade discount plus IGST @ 12%)

 

 

 

 

 

 

 

 

 

 

(ii)

Krishna‘s A/c

Dr.

 

10,080

 

 

 

To Sales A/c

 

 

 

9,000

 

 

To Output IGST A/c

 

 

 

1,080

 

(Goods  worth Rs 7,000 sold to Krishna for Rs 9,000 plus IGST @ 12%)

 

 

 

 

 

 

 

 

 

 

(iii)

Bank A/c

Dr.

 

11,200

 

 

 

To Sales A/c

 

 

 

10,000

 

 

To Output IGST A/c

 

 

 

1,200

 

(Goods worth Rs 10,000 sold and IGST charged @ 12%)

 

 

 

 

 

 

 

 

 

 

(iv)

Bank A/c

Dr.

 

5,000

 

 

 

To Cash A/c

 

 

 

5,000

 

(Cash deposited into Savings A/c)

 

 

 

 

 

 

 

 

 

 

(v) Machinery A/c Dr.   4,00,000  
        To Advance (on order)       40,000
        To Capital A/c (Note)       1,60,000
        To Bank A/c       2,00,000
  (Machinery purchased for exchange of personal machine and by issuing cheque)        
           
(vi) Machinery A/c Dr.   2,500  
        To Cash A/c       2,500
  (Wages paid for installation of machine)        

 

 

 

 

 


Note: An old machine(personal) given in exchange of Rs 30,000 and cheque of Rs 1,30,000 from Saving A/c will increase the Capital A/c of proprietor.



Page No 8.77:

Question 30:

On 1st April, 2019, the position of Rahman was as follows: Cash-in Hand ₹ 11,200; Cash at bank ₹ 2,57,600; Bills Receivable ₹ 68,800; Jai Ram (Dr.) ₹ 16,000; Ram Kumar (Dr.) ₹ 48,080; Office Furniture ₹ 52,800; Stock-in-Trade ₹ 4,16,000; Doulat Ram (Cr.) ₹ 1,74,720, Hari Ram (Cr.) ₹ 2,16,960; Bills Payable ₹ 80,000. What was the amount of capital of Rahman on that date? Pass the Journal entry to Open his books.

Answer:

Journal

Date

Particulars

 

L.F.

Debit

Amount
(₹)

Credit

Amount
(₹)

2019  

 

 

 

 

April 01 Cash-in-Hand A/c

Dr.

 

11,200

 

  Cash at Bank A/c

Dr.

 

2,57,600

 

  Bills Receivable A/c

Dr.

 

68,800

 

  Jai Ram’s A/c

Dr.

 

16,000

 

  Ram Kumar’s A/c

Dr.

 

48,080

 

  Office Furniture A/c

Dr.

 

52,800

 

  Stock-in-Trade A/c

Dr.

 

4,16,000

 

    To Doulat Ram’s A/c

 

 

 

1,74,720

    To Hari Ram’s A/c

 

 

 

2,16,960

    To Bills Payable A/c

 

 

 

80,000

    To Capital A/c (Balancing Figure)

 

 

 

3,98,800

  (Being the balances of assets, liabilities and capital brought forward)

 

 

 

 

   

 

 

 

 

Therefore, the amount of Capital of Rahman on 1st April, 2019 is ₹3,98,800.

Page No 8.77:

Question 31:

On 1st April, 2019, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Debtors ₹ 60,000; Creditors ₹ 96,000; Investment ₹ 2,40,000, Loan from Suresh ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.

Answer:

Journal

Date

Particulars

 

L.F.

Debit

Amount
(₹)

Credit

Amount
(₹)

2019  

 

 

 

 

April 01 Stock-in-Hand A/c

Dr.

 

2,88,000

 

  Cash at Bank A/c

Dr.

 

2,16,000

 

  Plant & Machinery A/c

Dr.

 

1,20,000

 

  Debtors A/c

Dr.

 

60,000

 

  Investments A/c

Dr.

 

2,40,000

 

    To Bills Payable A/c

 

 

 

48,000

    To Creditors A/c

 

 

 

96,000

    To Loan from Suresh A/c

 

 

 

1,80,000

    To Capital A/c (Balancing Figure)

 

 

 

6,00,000

  (Being the balances of assets, liabilities and capital brought forward)

 

 

 

 

   

 

 

 

 


Therefore, the amount of Capital of Tendulkar on 1st April, 2019 is ₹6,00,000.

Page No 8.77:

Question 32:

Pass the Opening Entry from the following Balance Sheet as at 31st March, 2019 of Vikas:

 
Liabilities ₹ Assets ₹
Capital A/c:   Land and Building 1,50,000
Opening Balance 5,05,115   Plant and Machinery                 2,50,750
Add: Profit for the year 1,20,115   Chandra & Sons 71,270
  6,25,230   Closing Stock 56,250
Less: Drawings 60,000 5,65,230 Cash in Hand 15,700
Salary Payable   15,000 Cash at Bank 75,250
Magic Trades   27,220 Input CGST 5,000
Babbar & Co.   11,770    
Output SGST   5,000    
         
    6,24,220   6,24,220
         

Answer:

Books of Vikas

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2019

 

 

 

 

 

April 01

Land & Building A/c

Dr.

 

1,50,000

 

 

Plant & Machinery A/c

Dr.

 

2,50,750

 

 

Chandra & Son’s A/c

Dr.

 

71,270

 

 

Closing Stock A/c

Dr.

 

56,250

 

 

Cash A/c

Dr.

 

15,700

 

 

Bank A/c

Dr.

 

75,250

 

  Input CGST A/c Dr.   5,000  

 

 

To Salary Payable A/c

 

 

 

15,000

 

 

To Magic Traders’s A/c

 

 

 

27,220

 

 

To Babbar & Co.Ltd’s A/c

 

 

 

11,770

    To Output SGST A/c       5,000

 

 

To Capital A/c (Balancing Figure)

 

 

 

5,65,230

 

(Opening entry made)

 

 

 

 

 

 

 

 

 



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