Double Entry Book Keeping Ts Grewal 2019 for Class 11 Commerce Accountancy Chapter 5

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)

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 ₹ 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)

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 ₹ 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 ₹ 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 = $(10, 000 + 20 % = 12, 000 - 10 %) = Rs 10,800$

WN 2: Calculation of Purchase price and Sales price

$\begin{array}{l} Purchase Price = (50, 000 - 15 %) Rs 42,500 \\ Sales Price = (42, 500 + 25 % = 53, 125 - 10 %) = Rs 47,812.5 \end{array}$

Question 4:

Journalise the following transactions in the books of Bhushan Agencies:
(i) Received from Bharat cash ₹ 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)

Question 5:

Journalise the following transactions:

		₹
(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)

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)

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 ₹ 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)

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)

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)

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 ₹10,000 instead of ₹11,000.

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 ₹ 300 plus CGST and SGST @ 6% each
Bought goods of ₹ 21,000 plus CGST and SGST @ 6% each
Sold goods of ₹ 7,500 plus CGST and SGST @ 6% each
Bought office furniture of ₹ 5,000 plus CGST and SGST @ 6% each from Banerjee Bros.
Sold goods of ₹ 10,000 plus CGST and SGST @ 6% each to Mahendra
Received cheque from Mahendra for the amount due
Sold goods of ₹ 5,000 plus CGST and SGST @ 6% each to Ramesh & Co.
Bought goods of ₹ 20,000 plus IGST @ 12% from S. Seth & Bros., Delhi
Bought goods of ₹ 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)

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 ₹ 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 ₹ 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.

Question 13:

M/s. Auto Aid, Delhi purchased 500 pieces of car horns @ ₹ 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

Question 14:

M/s. Vaish Traders, Delhi purchased 500 Parker Pens @ ₹ 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

Question 15:

M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at ₹ 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.

Question 16:

Name the accounts to be credited along with the amount for payment to Ajay of ₹ 4,800 by cheque in full settlement of ₹ 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)

Question 17:

Pass Journal entry for sale of goods by Rahul, Delhi to Anish, Delhi for ₹ 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

Question 18:

Pass Journal entry for purchase of goods by Amrit, Delhi from Ayur Products, Agra, (UP) for ₹ 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

Question 19:

Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 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

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%)

Question 21:

Oswal Woollen Mills, Amritsar (Punjab) sold shawls to Gupta Shawls, Jaipur as per details:
Sold 100 shawls @ ₹ 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)

Question 22:

Journalise the following transactions in the books of Ashok:
(i) Received ₹ 11,700 from Hari Krishan in full settlement of his account for ₹ 12,000.
(ii) Received ₹ 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 ₹ 7,000.
(iv) Paid ₹ 2,880 to A.K. Mandal in full settlement of his account for ₹ 3,000.
(v) Paid ₹ 2,880 to S.K. Gupta on his account for ₹ 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)

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 ₹ 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
April 09	Input IGST A/c	Dr.		10,600 1,272
	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%)

Question 24:

Journalise the following transactions:

2019
April 1	Paid into bank ₹ 21,000 for opening a Current Account.
April 2	Withdrew for personal expenses ₹ 5,000.
April 4	Withdrew from bank ₹ 3,000.
April 5	Placed an amount in Fixed Deposit at Bank by transfer from Current Account ₹ 5,000.
April 10	Received a cheque from Shiv & Co. to whom goods were sold for ₹ 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 ₹ 10)
April 17	Shiv & Co. settled his account by means of a cheque for ₹ 3,000, ₹ 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).

Question 25:

Journalise the following in the books of Amit Saini, Gurugram (Haryana):
(i) Goods of ₹ 5,000 were taken by him for personal use.
(ii) ₹ 2,000 due from Sohan were bad debts.
(iii) Goods of ₹ 6,000 were destroyed by fire and were not insured.
(iv) Paid ₹ 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 ₹ 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 ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
(ix) Paid rent in advance ₹ 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)

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 ₹ 10,000 as rent.
(iii) Charge depreciation of 10% on furniture costing ₹ 50,000.
(iv) Salaries due to employees ₹ 20,000.
(v) Sold to Sunil goods in cash of ₹ 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net of ₹ 8,500.
(vi) Provided interest on capital of ₹ 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			₹ 5,000
	To Input IGST A/c			₹ 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)

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 ₹ 1,00,000 along with a cheque for ₹ 25,000 as advance.
(iii) Paid to staff ₹ 40,000 against outstanding salary of ₹ 60,000.
(iv) Sold goods to Bharat, Kaithal (Haryana) of ₹ 10,000 plus IGST @ 12% out of which 1/5th were returned being defective.
(v) Cheque of ₹ 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 ₹ 25,000 from Mohan after banking hours.
(viii) Purchased goods from Barun of Chandigarh of ₹ 10,000 plus IGST @ 12% and sold them to Arun of Shimla (HP) at ₹ 22,400, including IGST @ 12%.
(ix) Arun returned goods of ₹ 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 ₹ 12,000 plus CGST and SGST @ 6% each for a period of one year.
(xii) Sold personal car for ₹ 1,00,000 and invested the amount in the firm.
(xiii) Goods costing ₹ 1,00,000 were destroyed in fire. Insurance company admitted the claim for ₹ 75,000. These goods were purchased within Delhi.
(xiv) Purchased machinery for ₹ 56,000 including IGST of ₹ 6,000 and paid cartage thereon ₹ 5,000 and installation charges ₹ 10,000.
(xv) Goods costing ₹ 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 ₹ 50,000 and paid it by means of a bank draft purchased from bank. Paid charges ₹ 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)

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 ₹ 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 ₹ 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)

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  ₹ 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.

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 1^st April, 2019 is ₹3,98,800.

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 1^st April, 2019 is ₹6,00,000.

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)

Double Entry Book Keeping Ts Grewal 2019 for Class 11 Commerce Accountancy Chapter 5 - Journal

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