Chapter 5 - Journal

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

60
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

E3
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

Solution:

Date
Journal

Particulars
ID
Debit Credit
L.F. Amount Amount
U
2019
Apr 01 Cash A/c Dr. 1,00,000
To Capital A/c 1,00,000
YG

Startedbusinesswithcash

Apr 02 Bank A/c Dr. 20,000

To Cash A/c 20,000
Paidintobank
D

Apr 03 Purchases A/c Dr. 50,000

To Cash A/c 50,000
Goodspurchased
U

Apr 04 Cash A/c Dr. 10,000

To Bank A/c 10,000
Drewfrombankforofficeuse
ST

Apr 13 Cash A/c Dr. 15,000

To Sales A/c 15,000
GoodssoldtoKirshnaforCash

Apr 20 Purchases A/c Dr. 22,500

To Cash A/c 22,500
Goodspurchasedforcash

Apr 22 Sales Return A/c Dr. 2,000

To Cash A/c 2,000
GoodssoldtoKrishnareturned

Apr 24 Cash A/c Dr. 12,500

Discount Allowed A/c Dr. 500
To Krishna A/c 13,000
 ReceivedfromKrishna

Apr 28 Shyam A/c Dr. 22,500

To Cash A/c 21,500
To Discount Received A/c 1,000
PaidtoShyam

Apr 30 Cash A/c Dr. 80,000

To Sales 80,000
CashsalesforthemonthofApril

Apr 30 Rent A/c Dr. 5,000

To Cash A/c 5,000
Paidrent

60
Apr 30 Salary A/c Dr. 10,000
To Cash A/c 10,000
Paidsalary

E3
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
Jan. 3 Bought goods from M/s. Singh & Co.
Jan. 3 Paid cartage
Jan. 4 Purchased furniture
ID
Jan. 4 Placed an order for HP Printers for 15,000, amount advanced
60,000
20,000
300
2,000
5,000
U
Jan. 4 Purchased calculator 1,000
Jan. 4 Purchased computer through cheque 13,000
Jan. 6 Paid for postage 150
YG

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
D

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
U

Solution:
Journal
Debit Credit
ST

Date Particulars L.F. Amount Amount

Rs Rs
2019
Jan.01 Cash A/c Dr. 1,00,000
To Capital A/c 1,00,000
Businessstartedwithcash

Jan.02 Bank A/c Dr. 60,000

To Cash A/c 60,000
Cashdepositedintocash

Jan.03 Purchases A/c Dr. 20,000

To Cash A/c 20,000
Goodspurchasedforcash

Jan.03 Cartage A/c Dr. 300

To Cash A/c 300

 Cartagepaid

Jan.04 Furniture A/c Dr. 2,000

To Bank A/c 2,000
Furniturepurchasedbycheque

Jan.04 HP Printers A/c Dr. 5,000

To Bank A/c 5,000
Advancepaidforplacinganorderforprinter

Jan.04 Office Equipments A/c Dr. 1,000

To Bank A/c 1,000
Calculatorpurchasedbycheque

Jan.04 Computer A/c 13,000

To Bank A/c 13,000

60
Computerpurchasedbycheque

Jan.06 Postage A/c Dr. 150

To Cash A/c 150
Postagepaid

E3
Jan.08 Cash A/c Dr. 4,000
To Sales A/c 4,000
GoodsSold

Jan.09 Cash A/c Dr. 10,000

To Sales A/c 10,000
GoodsSold

Jan.09 Cartage A/c

To Cash A/c
Cartagepaid
ID Dr. 200
200
U
Jan.15 M/s Singh & Co. A/c Dr. 17,500
To Cash A/c 17,500
Paymentmade
YG

Jan.25 M/s Ray & Co. A/c Dr. 5,600

To Sales A/c 5,600
GoodsSold

Jan.27 Bank A/c Dr. 9,750

Discount Allowed A/c Dr. 250
To M/s Sharda & Co. A/c 10,000
D

PaymentReceived

Jan.31 Electricity Charges A/c Dr. 1,000

To Cash A/c 1,000
U

ElectricityChargespaid

Jan.31 Salary A/c Dr. 1,500

To Cash A/c 1,500
ST

Salarypaid

Jan.31 Rent A/c Dr. 2,500

Drawings A/c Dr. 2,500
To Cash A/c 5,000
Rentpaid

Jan.31 Drawings A/c Dr. 3,500

To Cash A/c 3,500
Cashwithdrawnforpersonaluse

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

60
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

E3
cheque.
xii
Aman returned goods of list price of 10,000 sold to him at 10% trade discount.
Solution:
Journal

Date

i Purchase A/c
Particulars ID Dr.
L.F.
Debit
Amount
Rs

16,000
Credit
Amount
Rs
U
To Bank A/c 16,000
GoodspurchasedfromVishalbycheque

ii Purchase A/c Dr. 17,000

YG

To Cash A/c 17,000

GoodspurchasedfromNamanforcash

iii Purchase A/c Dr. 24,000

To Amrit 24,000
GoodspurchasedfromAmrikoncredit

iv Purchase A/c Dr. 35,000

D

To Cash A/c 35,000

Goodspurchasedforcash
U

v Amrit Dr. 8,000

To Purchase Returns A/c 8,000
GoodsreturnedbyAmrik
ST

vi Bank A/c Dr. 36,000

To Sales A/c 36,000
GoodssoldtoParulbycheque

vii Cash A/c Dr. 27,000

To Sales A/c 27,000
GoodssoldtoAmanforcash

viii Pawan Dr. 18,000

To Sales A/c 18,000
GoodssoldtoPawanoncredit

ix Yamini Dr. 23,000

To Sales A/c 23,000
GoodssoldtoYaminioncredit

x Bhupesh Dr. 10,800

To Sales A/c 10,800
 GoodssoldtoBhupeshoncredit

xi Bank A/c Dr. 47,812.50

To Sales A/c 47,812.50
Goodssoldagainstcheque

xii Sales Returns A/c Dr. 9,000

To Aman 9,000
GoodsreturnedbyAman

Working Notes:
WN1: Calculation of Sales price
Sales Price =

60
(10, 000 + 20% = 12, 000 − 10%) = Rs 10,800

WN 2: Calculation of Purchase price and Sales price

Purchase Price =(50, 000 − 15%) Rs 42,500
Sales Price =(42, 500 + 25% = 53, 125 − 10%) = Rs 47,812.5

E3
Question:4
Journalise the following transactions in the books of Bhushan Agencies:
i

ii
ID
Received from Bharat cash 20,000, allowed him discount of 500.

Received from Vikas 35,000 by cheque, allowed him discount of 750.

iii
U
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.
YG

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
D

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.
U

x
Sold goods of 30,000 against cheque allowing 2% discount.
xi
ST

Sold goods of 60,000 to Vimal received 50% of due amount allowing 2% discount.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs

i Cash A/c Dr. 20,000

Discount Allowed A/c Dr. 500
To Bharat 20,500
PaymentreceivedfromBharat

ii Bank A/c Dr. 35,000

Discount Allowed A/c Dr. 750
To Vikas 35,750
PaymentreceivedfromVikas

iii Cash A/c Dr. 38,000

 Discount Allowed A/c Dr. 2,000

To Akhil 40,000
PaymentreceivedfromAkhil

iv Bank A/c Dr. 50,000

To Amrit 50,000
PaymentreceivedfromAmrit

v Suresh Dr. 40,000

To Cash A/c 39,200
To Discount Received A/c 800
PaymentmadetoSuresh

vi Mehar Dr. 26,000

To Bank A/c 25,000
To Discount Received A/c 1,000

60
PaymentmadetoMeher

vii Yogesh Dr. 25,000

To Bank A/c 25,000
PaymentmadetoYogesh

E3
viii Purchases A/c Dr. 97,000
To Bank A/c 97,000
Goodsboughtagainstcheque

ix Purchases A/c Dr. 60,000

To Akash & Co. 30,000

x
To Cash A/c
To Discount Received A/c
Goods bought from Akash & Co.

Bank A/c
ID Dr. 29,400
29,100
900
U
To Sales A/c 29,400
Goodssoldagainstcheque

xi Vimal Dr. 30,000

YG

Cash A/c Dr. 29,400

Discount Allowed A/c Dr. 600
To Sales A/c 60,000
GoodssoldtoVimal
D

Question:5
Journalise the following transactions:
U

Shyam became insolvent. A first and final compensation of

i 75 paise in a rupee was received from his Official Receiver. 10,000
He owed us
ST

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
Placed an order with Rakesh Mohan for the supply of goods
v of the list price of 1,00,000. In this connection, Raman paid
10% of the list price as an advance by cheque.
Solution:
Journal
Debit Credit
Sr. No. Particulars L.F. Amount Amount
Rs Rs

i Cash A/c Dr. 7,500

Bad Debts A/c Dr. 2,500
To Shyam’s A/c 10,000
InsolvencyofShyamwith75paisainarupeerecoverable
 ii Cash A/c Dr. 5,000

To Bad Debts Recovered A/c 5,000

Amountwrittenoffasbaddebtsrecovered

iii Rent A/c Dr. 8,000

To Outstanding Rent A/c 8,000
Rentduetolandlord

iv Salary A/c Dr. 10,000

To Outstanding Salary A/c 10,000
Salaryduetoclerk

v Advance to Rakesh Mohan A/c Dr. 10,000

To Bank A/c 10,000
AdvancepaidtoRakeshMohanforafutureorder

60
Question:6
Journalise the following entries:
i

E3
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

v
Charge interest on Drawings 1,500.
vi
ID
Received a first and final dividend of 60 paise in a rupee from the Official Receiver of Rajan, who owed us 1,000.
U
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.
Solution:
YG

Journal
Debit Credit
Sr. No. Particulars L.F. Amount Amount

i Charity A/c Dr. 500

To Purchases A/c 500
Goodsgivenascharity
D

ii Bank A/c Dr. 25,000

Mayank A/c Dr. 75,000
U

To Sales A/c 1,00,000

Goodssoldpartlythroughchequeandpartlythroughcredit
ST

iii Cash A/c Dr. 975

Discount Allowed A/c Dr. 25
To Harikrishna A/c 1,000
CashreceivedfromHarikrishnainfullandfinalsettlement

iv Cash A/c Dr. 600

Bad Debts A/c Dr. 400
To Rajan A/c 1,000
FirstandfinaldividendreceivedfromRajaninfullsettlementofhisdebt

v Drawings A/c Dr. 1,500

To Interest on Drawings A/c 1,500
Interestondrawingscharged

vi Cash A/c Dr. 40,000

To Sales A/c 40,000
 GoodssoldtoAnilat25

Cartage A/c Dr. 100

To Cash A/c 100
Cartagepaid

Question:7
Journalise the following transactions:

a
Shyam became insolvent. A first and final
compensation of 75 paise in a rupee

60
was received from his official receiver. He
b
owed a debt of 50,000
Received cash for a bad debt written off last 25,000
c
year 40,000
Rent due to landlord 5,000
d

E3
Depreciation on office furniture 50,000
Salaries due to staff 1,50,000
e
Paid income tax
Received commission 25,000, half of which is
f
in advance

g
Solution:
Journal
ID Debit Credit
Date Particulars L.F. Amount Amount
U
a Cash A/c Dr. 37,500
Bad-Debts A/c Dr. 12,500
YG

To Shyam A/c 50,000

75paiseinarupeereceivedfromShyam

b Cash A/c Dr. 25,000

To Bad-Debts Recovered A/c 25,000
Receivedcashagainstdebtswrittenoffasbadearlier
D

c Rent A/c Dr. 40,000

To Rent Outstanding A/c 40,000
Rentdue
U

d Depreciation A/c Dr. 5,000

To Office Furniture A/c 5,000
ST

Depreciationonofficefurniture

e Salary A/c Dr. 50,000

To Salary Outstanding A/c 50,000
Salarydue

f Drawings A/c Dr. 1,50,000

To Cash A/c 1,50,000
Paidincometax

g Cash A/c Dr. 25,000

To Commission A/c 12,500
To Commission Received in Advance A/c 12,500
Commissionreceived, halfofwhichisadvance
Question:8
Journalise the following transactions of Singh Enterprises, Delhi:
2018
June 1 Started business with cash 50,000
Deposited cheque from Savings Account in
June 2 2,00,000
firm's account
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
Bought furniture from S.R. Furnishers against
June 20 22,400
Cash
June 27 Paid rent 28,000

60
June 30 Paid salary 50,000
Solution:
Journal
Debit Credit

E3
Date Particulars L.F. Amount Amount

2018
June 01 Cash A/c Dr. 50,000
To Capital A/c 50,000
Startedbusinesswithcash

June 02 Bank A/c

To Capital A/c
ChequefromSavingsA/ctoFirm ′ sA/c
Dr.
ID2,00,000
2,00,000
U
June 03 Cash A/c Dr. 50,000
To Ram’s A/c 50,000
Receivedcash
YG

June 04 Purchases A/c Dr. 15,000

To Cash A/c 15,000
Goodspurchased

June 11 M/s Hari A/c Dr. 12,000

D

To Sales A/c 12,000

Goodssoldoncredit
U

June 13 Ramavtar’s A/c Dr. 40,000

To Cash A/c 40,000
PaidcashtoRamavtar
ST

June 17 Cash A/c Dr. 10,000

To M/s Hari A/c 10,000
ReceivedcashfromM/sHariA/c

June 20 Furniture A/c Dr. 20,000

To Cash A/c 20,000
Boughtfurnitureforcash

June 27 Rent A/c Dr. 28,000

To Cash A/c 28,000
Paidrent

June 30 Salary A/c Dr. 50,000

To Cash A/c 50,000
Paidsalary
Question:9
Journalise the following transactions of Rakesh Agencies, Delhi ProprietorShriRakesh
:

2019
Rakesh commenced business with
Jan 1 50,000
cash
Jan 2 Purchased goods for cash 10,000
Jan 5 Purchased goods from Mohan, Delhi 6,000
Opened bank account with Bank of
Jan 7 10,000
India

60
Jan Purchased furniture for office 2,000
10
Jan
Sold goods for cash 8,000
15

E3
Jan
Sold goods to Ram, Delhi 5,000
20
Jan
Cash sales 3,500
25
Jan
Paid to Mohan on account 3,000
27
Jan
28
Jan
Ram returns goods costing 500
ID
Paid Salaries 9,000
U
31
Jan Rejected and returned 10% of goods
31 supplied by Mohan
YG

Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount

2019
D

Jan 01 Cash A/c Dr. 50,000

To Capital A/c 50,000
Startedbusinesswithcash
U

Jan 02 Purchases A/c Dr. 10,000

To Cash A/c 10,000
ST

Goodspurchased

Jan 05 Purchases A/c Dr. 6,000

To Mohan A/c 6,000
Goodspurchased

Jan 07 Bank A/c Dr. 10,000

To Cash A/c 10,000
OpenedBankA/c

Jan 10 Furniture A/c Dr. 2,000

To Cash A/c 2,000
Furniturepurchased
 Jan 15 Cash A/c Dr. 8,000

To Sales A/c 8,000

Goodssold

Jan 20 Ram A/c Dr. 5,000

To Sales A/c 5,000
Goodssold

Jan 25 Cash A/c Dr. 3,500

To Sales A/c 3,500
Goodssold

Jan 27 Mohan’s A/c Dr. 3,000

60
To Cash A/c 3,000
PaidtoMohanonaccount

Jan 28 Sales Return A/c Dr. 500

E3
To Ram’s A/c 500
GoodsreturnedbyRam

Jan 31 Salary A/c Dr. 9,000

To Cash 9,000
Paidsalaries

Jan 31 Mohan’s A/c Dr. 600

ID
To Purchases Return 600
U
A/c
Returned10
YG

Question:10
Journalise the following transactions of Satish, Noida UP
:
D

2019
Jan 1 Started business with cash 40,000
Jan 2 Opened Bank Account by cheque from Savings Account 60,000
U

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
ST

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

Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount

2019
 Jan 01 Cash A/c Dr. 40,000

To Capital A/c 40,000

Startedbusinesswithcash

Jan 02 Bank A/c Dr. 60,000

To Capital A/c 60,000
ChequefromSavingsA/ctoFirm ′ sA/c

Jan 03 Purchases A/c Dr. 20,000

To M/s S. Singh & Co. A/c 20,000
Goodspurchased

Jan 04 Computer A/c Dr. 15,000

To Bank A/c 15,000

60
Purchasedcomputer

Jan 06 Postage A/c Dr. 150

To Cash A/c 150
Paidforpostage

E3
Jan 08 Cash A/c Dr. 4,000
To Sales A/c 4,000
Goodssold

Jan 09 M/s Sharda & Co. A/c Dr. 10,000

To Sales A/c
Goodssold

Jan 15 M/s S. Singh & Co. A/c

ID Dr. 20,000
10,000
U
To Cash A/c 19,600
To Discount Received A/c 400
Paid to M/s S. Singh & Co.
YG

Jan 25 M/s Ray & Co. A/c Dr. 5,600

To Sales A/c 5,600
Goodssold

Jan 27 Bank A/c Dr. 10,000

To M/s Sharda & Co. A/c 10,000
D

Received from M/s Sharda & Co.

Jan 31 Electricity Charges A/c Dr. 1,000

U

To Cash A/c 1,000

Paidforelectricitycharges
ST

Jan 31 Rent A/c Dr. 2,500

Drawings A/c Dr. 2,500
To Cash A/c 5,000
Paidrentforbuilding, halfbuildingisoccupiedbyproprietorforresidentialpurpose

Jan 31 Drawings A/c Dr. 3,500

To Cash 3,500
Drawingsmadebyproprietor

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 Started business with cash
July 2 Cash paid into bank
July 5 ​Bought stationery of 300 plus CGST and SGST @ 6% each
80,000
July 6 Bought goods of 21,000 plus CGST and SGST @ 6% each
50,000
July Sold goods of 7,500 plus CGST and SGST @ 6% each
11 Bought office furniture of 5,000 plus CGST and SGST @ 6% each from
July Banerjee Bros.
12 Sold goods of 10,000 plus CGST and SGST @ 6% each to Mahendra
July Received cheque from Mahendra for the amount due
16 Sold goods of 5,000 plus CGST and SGST @ 6% each to Ramesh &
July Co.
20 Bought goods of 20,000 plus IGST @ 12% from S. Seth & Bros., Delhi

60
July Bought goods of 2,250 plus IGST @12 % for cash from S. Narain &
23 Co., Ludhiana Punjab
2,500
July 22,000
26 Ramesh & Co. paid on account
1,000
July Paid to S. Seth & Bros. by cheque in full settlement

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28 Rent is due to S. Sharma but not yet paid.
July
31

Solution:

Date
Journal

Particulars
ID Debit Credit
L.F. Amount Amount

2018
U
July 01 Cash A/c Dr. 80,000
To Capital A/c 80,000
Startedbusinesswithcash
YG

July 01 Bank A/c Dr. 50,000

To Cash A/c 50,000
Cashpaidintobank

July 01 Stationery A/c Dr. 300

Input CGST A/c Dr. 18
D

Input SGST A/c Dr. 18

To Cash A/c 336
Stationerypurchased
U

July 02 Purchases A/c Dr. 21,000

Input CGST A/c Dr. 1,260
ST

Input SGST A/c Dr. 1,260

To Cash A/c 23,520
Purchasedgoods

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
Goodssold

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
Furniturepurchased
 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
Goodssold

July 12 Cash A/c Dr. 11,200

To Mahendra A/c 11,200
ReceivedfromMahendra

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

60
Goodssold

July 20 Purchases A/c Dr. 20,000

Input IGST A/c Dr. 2,400
To S. Seth & Bros. A/c 22,400

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Goodspurchased

July 23 Purchases A/c Dr. 2,250

Input IGST A/c Dr. 270
To Cash A/c 2,520
Goodspurchased

July 26 Cash A/c

To Ramesh & Co. A/c
Paid to Ramesh & Co. on account
Dr.
ID 2,500
2,500
U
July 28 S. Seth & Bros. A/c Dr. 22,400
To BankA/c 22,000
YG

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
Rentoutstanding
D

Question:12
Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana Punjab
U

:
2019
Jan. 1 Started business with cash 50,000
ST

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
Purchased timber from Singh & Co., Ludhiana Punjab
Jan. 20
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.
Solution:
 Journal

Debit Credit
Date Particulars L.F Amount Amount
Rs Rs
2019
Jan.01 Cash A/c Dr. 50,000
To Capital A/c 50,000
StartedbusinesswithCash

Jan.02 Bank A/c Dr. 3,50,000

To Cash A/c 3,50,000
Depositedcashintobank

Jan.10 Machinery A/c Dr. 1,00,000

60
Input CGST A/c 6,000
Input SGST A/c 6,000
To Bank A/c 1,12,000
(Purchased machinery @ 6% CGST and SGST)

E3
Jan.15 Machinery A/c Dr. 2,000
To Cash A/c 2,000
Paidinstallationcharges

Jan.20 Purchase A/c Dr. 18,000

Input CGST A/c
Input SGST A/c
To Singh & Co.
Purchasedtimber@6
ID 1,080
1,080
20,160
U
Jan.25 Furniture A/c Dr. 5,600
To Purchases A/c 5,000
To Input CGST A/c 300
YG

To Input SGST A/c 300

TimberusedforofficefurnitureandGSTreversed

Jan.31 Rakesh A/c Dr. 10,080

To Sales A/c 9,000
To Output CGST A/c 540
To Output SGST A/c 540
D

SoldgoodstoRakesh@6

Feb.10 Singh & Co. Dr. 20,160

U

To Bank A/c 20,000

To Discount Received A/c 160
Sent cheque to Singh & Co. and discount received
ST

Feb.15 Cash A/c Dr. 10,000

Discount Allowed A/c Dr. 80
To Rakesh 10,080
ReceivedCashfromRakeshanddiscountallowed

Feb.20 Wages A/c Dr. 15,000

To Cash A/c 15,000
Paidwages

Feb.25 Rent A/c Dr. 5,000

To Bank A/c 5,000
Paidrent

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?
Solution:
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

60
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?

E3
Solution:
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%
Invoice Value
Less: Cash Discount @ 5%
Amount Payable
5,100
95,200
4,760
90,440
ID
U
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,
YG

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.
Solution:
List Price 500 × 100 50,000
Less: Trade Discount @ 10% 5,000
D

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.
U

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.
ST

Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
Ajay A/c Dr. 5,000
To Bank A/c 4,800
To Discount Received A/c 200
PaidtoAjayinfullandfinalsettlement

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.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs 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
Goodssoldanddiscountallowed

Working Notes:

60
List Price 10,000
Less: Trade Discount @ 10% 10,000
Value of Goods 9,000
Add: CGST @ 6% 540
Add: SGST @ 6% 540

E3
Invoice Value 10,080
Less: Cash Discount @ 2% 202
Amount Received 9,878

Question:18

for 25,000 less Trade Discount @ 15% plus IGST @ 12%.

Solution:
Journal
ID
Pass Journal entry for purchase of goods by Amrit, Delhi from Ayur Products, Agra, UP
U
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
YG

Purchases A/c Dr. 21,250

Input IGST A/c Dr. 2,550
To Ayur Products A/c 23,800
Goodspurchasedoncredit

Working Notes:
D

List Price 25,000

Less: Trade Discount @ 15% 3,750
Value of Goods 21,250
U

Add: IGST @ 12% 2,550

Amount Payable 23,800
ST

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.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs 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
Goodspurchasedanddiscountreceived
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

60
@ 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.
Solution:

E3
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
Purchases A/c Dr. 1,08,000
Input IGST A/c Dr. 12,960
To Hero Cycles A/c
Goodspurchased@10

Hero Cycles A/c Dr.

ID 12,096
1,20,960
U
To Purchases Return A/c 10,800
To Input IGST A/c 1,296
Returned10cycles
YG

Hero Cycles A/c Dr. 1,08,864

To Cash A/c 1,05,598
To Discount Received A/c 3,266
Balancepaidandreceivedcashdiscountof3
D

Question:21
Oswal Woollen Mills, Amritsar Punjab
U

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
ST

10th February, 2019. Pass Journal entries.

Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
( ) ( )
2019
Jan 04 Gupta Shawls A/c Dr. 16,800
To Sales A/c 15,000
To Output IGST A/c 1,800
Goodssold@25

Jan 14 Cash A/c Dr. 8,400

To Gupta Shawls A/c 8,400
50
 Feb 10 Cash A/c Dr. 8,400

To Gupta Shawls A/c 8,400

Balance50

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.

60
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.
Solution:

E3
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
i Cash A/c Dr. 11,700
Discount Allowed A/c
To Hari Krishan’s A/c
Receivedinfullsettlement
Dr.
ID 300
12,000

ii Cash A/c Dr. 11,700

U
To Shyam’s A/c 11,700
ReceivedfromShyamonaccount
YG

iii Cash A/c Dr. 4,900

Bad Debts A/c Dr. 2,100
To Rajagopal’s A/c 7,000
Received70paiseinarupeefromRajagopal

iv A.K. Mandal’s A/c Dr. 3,000

D

To Cash A/c 2,880

To Discount Received A/c 120
Paidinfullsettlement
U

v S.K. Gupta’s A/c Dr. 2,880

To Cash A/c 2,880
PaidonaccounttoS. K. Gupta
ST

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
tobechargedfromcustomer
.

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 ∗

60
are not subject to levy of GST.
Solution:
Books of Suresh
Journal
Debit Credit

E3
Date Particulars L.F. Amount Amount

2019
April 01 Bank A/c Dr. 60,000
To Capital A/c 60,000
PaidintoBankasCapital

April 02 Purchases A/c

Input CGST A/c
ID Dr.
Dr.
24,000
1,440
U
Input SGST A/c Dr. 1,440
To Bank A/c 26,880
Boughtgoodsforcheque@6
YG

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
D

April 04 Cash A/c Dr. 12,208

U

To Sales A/c 10,900

To Output CGST A/c 654
To Output SGST A/c 654
SoldgoodsforCash@6
ST

April 05 Sundry Expenses A/c Dr. 3,000

To Cash A/c 3,000
PaidSundryExpenses

April 08 Furniture A/c Dr. 4,000

To Bank A/c 4,000
BoughtOfficefurniturebycheque

April 09 Purchases A/c Dr. 10,600

Input IGST A/c Dr. 1,272
To Ramesh and Bros. 11,872
 BoughtgoodsfromRameshandBros. @12

April 11 Ramesh and Bros. Dr. 1,680

To Purchase Return A/c 1,500
To Input IGST A/c 180
GoodreturnedtoRameshandBros. andIGST@12

April 12 Ramesh Bros. A/c Dr. 10,192

To Bank A/c 9,500
To Discount Received A/c 692
ChequesenttoRameshandBros. anddiscountreceived

60
April 30 Interest A/c Dr. 200
To Bank A/c 200
BankchargedInterest

E3
April 30 Cash A/c Dr. 50,000

To Loan from Ridhi A/c 50,000

BorrowedfromRidhi@10

April 30 Cash A/c

To Mahendra
ID Dr. 6,000
6,000
U
ReceivedfromMahendraonaccount

April 30 Cash A/c Dr. 2,000

YG

To Capital A/c 2,000

Soldhouseholdfurnitureandpaidtheamountintobusiness

April 30 Cash A/c Dr. 5,376

To Sales A/c 4,800
D

To Output CGST A/c 288

To Output SGST A/c 288
SoldgoodsforCash@6
U

April 30 Sunil Dr. 22,550

To Sales A/c 20,000
ST

To Output CGST A/c 1,200

To Output SGST A/c 1,200
To Cartage A/c 150
SoldgoodstoAnil@6

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.
Placed an amount in Fixed Deposit at Bank by transfer
April 5
from Current Account 5,000.
 Received a cheque from Shiv & Co. to whom goods were
April 10 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 Bankcharges 10
Shiv & Co. settled his account by means of a cheque for
April 17
3,000, 40 being interest charged.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount

2019
Apr 01 Bank A/c Dr. 21,000

60
To Cash A/c 21,000
PaidintobankforopeningaCurrentA/c

Apr 02 Drawings A/c Dr. 5,000

To Cash A/c 5,000

E3
Withdrewforprivateexpenses

Apr 04 Cash A/c Dr. 3,000

To Bank A/c 3,000
Withdrewfrombankforofficeuse

Apr 5 Fixed Deposit A/c

To Bank A/c
PlacedonFDbytransferfromCurrentA/c
ID Dr. 5,000
5,000
U
Apr 10 Cheques in Hand A/c Dr. 2,940
Discount Allowed A/c Dr. 60
To Shiv & Co. A/c 3,000
YG

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

D

To Bank A/c 2,950

Shiv & Co.’s cheque dishonoured
U

Apr 17 Bank A/c Dr. 3,000

To Shiv & Co. A/c 2,950
To Interest A/c 50
ST

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
notRs40, asgiveninthebook
.

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. GSTisnottobelevied
.
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

60
Paid rent in advance 4,000.
​C GST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.
Solution:
Journal
Debit Credit

E3
Date Particulars L.F. Amount Amount
( ) ( )
i Drawings A/c Dr. 5,600
To Purchases A/c 5,000
To Input CGST A/c 300

ii
To Input SGST A/c
Goodsusedforpersonaluse

Bad Debts A/c

ID
Dr. 2,000
300

To Sohan’s A/c 2,000

U
Debtorsprovedbad

iii Loss of Stock by Fire A/c Dr. 6,720

YG

To Purchases A/c 6,000

To Input CGST A/c 360
To Input SGST A/c 360
Uninsuredgoodslostbyfire

iv Machine A/c Dr. 4,000

D

To Cash A/c 4,000

Wagespaidforinstallationofmachine

v Cash A/c Dr. 19,152

U

Discount Allowed A/c Dr. 1,008

To Sales A/c 18,000
To Output IGST A/c 2,160
ST

Goodssoldanddiscountallowed

vi Cash A/c Dr. 2,000

To Bad Debts Recovered A/c 2,000
Ramesh ′ sdebtwritten − offpreviouslyrecovered

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
Goodsgivenascharity

viii Cash A/c Dr. 9,750

Discount Allowed A/c Dr. 250
To Ramesh’s A/c 10,000
ReceivedfromRameshinfullsettlement
 ix Prepaid Rent A/c Dr. 4,000
To Cash A/c 4,000
Paidrentinadvance

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

60
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

E3
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
To Purchase A/c
... Dr. 5,600

5,000
ID
U
To Input IGST A/c 600

Solution:
YG

Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
i Cash A/c Dr. 15,000
Bad-Debts A/c Dr. 10,000
To Raj’s A/c 25,000
D

Received60paiseinfullandfinalsettlement

ii Rent A/c Dr. 10,000

U

To Rent Outstanding A/c 10,000

Owedrenttolandlord
ST

iii Depreciation A/c Dr. 5,000

To Furniture A/c 5,000
10

iv Salaries A/c Dr. 20,000

To Salaries Outstanding A/c 20,000
Salariesduetoemployees

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
Goodssold

vi Interest on Capital A/c Dr. 10,000

 To Capital A/c 10,000

Interestoncapitalallowed@10

vii Loss of Stock by Theft A/c Dr. 5,600

To Purchases A/c 5,000
To Input IGST A/c 600
Goodslostbytheft

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.

60
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

E3
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

vii ID
Received 40 paise in a rupee from Feroz against the above dues.

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
U
at 22,400, including IGST @ 12%.
ix
Arun returned goods of 6,720, including IGST which were returned to Barun.
YG

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.
D

xiii
Goods costing 1,00,000 were destroyed in fire. Insurance company admitted the claim for 75,000. These goods were
purchased within Delhi.
U

xiv
Purchased machinery for 56,000 including IGST of 6,000 and paid cartage thereon 5,000 and installation charges 10,000.
xv
ST

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.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
i No Entry

ii Cash A/c Dr. 25,000

To Advance from Ak & Co. 25,000
Advancereceivedfororder
iii Outstanding Salary A/c Dr. 40,000
To Cash A/c 40,000
Paymentofoutstandingsalaries

iv Bharat’s A/c Dr. 11,200

To Sales A/c 10,000
To Output IGST A/c 1,200
Goodssold

Sales Return A/c Dr. 2,000

Output IGST A/c Dr. 240
To Bharat’s A/c 2,240
1/5thgoodsreturnedbyBharat

60
v Feroz’s A/c Dr. 20,000
To Bank A/c 20,000
ChequeissuedbyFerozdishonoured

vi Cash A/c Dr. 8,000

E3
Bad Debts A/c Dr. 12,000
To Feroz’s A/c 20,000
Received40paiseinarupeeasfullandfinalsettlementfromFeroz

vii Cheque in Hand A/c Dr. 25,000

To Mohan’s A/c 25,000

viii
ReceivedchequefromMohan

Purchases A/c
Input IGST A/c
ID Dr.
Dr.
10,000
1,200
U
To Barun’s A/c 11,200
Goodspurchased

Arun’s A/c Dr. 22,400

YG

To Sales A/c 20,000

To Output IGST A/c 2,400
Goodssold

ix Sales Return A/c Dr. 6,000

Output IGST A/c Dr. 720
D

To Arun’s A/c 6,720

GoodsreturnedbyArun
U

Barun’s A/c Dr. 6,720

To Purchases Return A/c 6,000
To Input IGST A/c 720
ST

GoodsreturnedtoBarun

x TV A/c Dr. 2,00,000

Input IGST A/c Dr. 24,000
To Cash A/c 2,24,000
TVpurchased

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
TVsold

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

Paidinsurance

xii Cash A/c Dr. 1,00,000

To Capital A/c 1,00,000
Soldpersonalcarandinvestedtheproceedsintobusiness

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
Claimlodgedwithinsurancecompany, includingCGSTandSGST

60
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

E3
Input IGST A/c Dr. 6,000
To Cash A/c 71,000
Purchasedmachinery

xv Bank A/c Dr. 47,416

Discount Allowed A/c
To Sales A/c
To Output CGST A/c
To Output SGST A/c
Goodssold@10
ID Dr. 968
43,200
2,592
2,592
U
xvi Machinery A/c Dr. 50,000
Bank Charges A/c Dr. 500
YG

To Bank A/c 50,500

Purchasedmachineryandpaidbybanddraft

Question:28
D.Chadha, Delhi commenced business on 1st January, 2019. His transactions for the month are given below. Journalise them.
D

He will close his books on 31st March each year.

2019
U

Jan. 1 Commenced business with Cash 25,000

Jan. 2 Opened Bank Account with cheque from his Savings Account 2,25,000
ST

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 GSTnotlevied 8,000
Jan. 8 Sold goods to Mahesh, Kochi of 60,000; charged IGST @ 12%
Jan. 10 Received cheque from Rajesh Discountallowed 1, 200 66,000
Jan. 11 Paid to Ramesh & Co. (Discount received 2,700) 51,300
Paid rent @ 15,000 per month for three months up to March, plus CGST and SGST @
Jan. 12
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 beingnotaspersample 2,000

Jan. 31 Paid salaries for the month 20,000

Solution:
Books of D. Chadha
Journal
Debit Credit
Date Particulars L.F. Amount Amount

2019
Jan.01 Cash A/c Dr. 25,000
To Capital A/c 25,000
StartedbusinesswithCash

Jan.02 Bank A/c Dr. 2,25,000

60
To Cash A/c 2,25,000
OpenedBankAccountwithhisSavingsBankAccountCheque

Jan.03 Purchases A/c Dr. 54,000

Input CGST A/c Dr. 3,240

E3
Input SGST A/c Dr. 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
SoldgoodstoRajesh@6
ID 60,000
3,600
3,600
U
Jan.07 Purchases A/c Dr. 65,000
Input IGST A/c Dr. 7,800
To Rahul 72,800
YG

BoughtgoodsfromRahul@12

Jan.08 Wages A/c Dr. 800

To Cash A/c 800
PaidWages
D

Jan.08 Mahesh Dr. 67,200

To Sales A/c 60,000
To Output IGST A/c 7,200
U

SoldgoodstoMahesh@12

Jan.10 Bank A/c Dr. 66,000

Discount Allowed A/c Dr. 1,200
ST

To Rajesh 67,200
ReceivedchequefromRajeshanddiscountallowed

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 Dr. 15,000

Input CGST A/c Dr. 900
Input SGST A/c Dr. 900
To Cash A/c 16,800
PaidrentinadvanceuptoMarchplus6

Jan 15 Expenses A/c Dr. 700

To Cash A/c 700
 Paidofficeexpensesincash

Jan.21 Rakesh Dr. 28,000

To Sales A/c 25,000
To Output CGST A/c 1,500
To Output SGST A/c 1,500
(Sold goods to Rakesh)

Jan.22 Expenses A/c Dr. 500

To Cash A/c 500
Paidofficeexpenses

Jan.22 Rahul Dr. 64,500

To Bank A/c 61,300

60
To Discount Received A/c 3,200
PaidtoRahulanddiscountreceived

Jan.25 Bank A/c Dr. 65,700

Discount Allowed A/c Dr. 1,500

E3
To Mahesh 67,200
ReceivedChequefromMahesh, Kochianddiscountallowed

Jan.27 Sales Return A/c Dr. 2,000

Output CGST A/c Dr. 120
Output SGST A/c
To Rakesh
ID
Dr.

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

120
2,240

Jan 31 Salaries A/c Dr. 20,000

U
To Cash A/c 20,000
Paidofficeexpensesandsalariesincash
YG

Question:29
Journalise the following transactions in the books of Manoj Store:
D

i
Purchased goods from Ramesh 20,000 less Trade Discount at 20% plus IGST @ 12% .
ii
U

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.
ST

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.
Solution:
Books of Manoj Store
 Journal

Debit Credit
Date Particulars L.F. Amount Amount
Rs Rs
i Purchases A/c Dr. 18,000
Input IGST A/c Dr. 2,160
To Ramesh’s A/c 20,160
GoodspurchasedfromRameshat20

ii Krishna‘s A/c Dr. 10,080

To Sales A/c 9,000
To Output IGST A/c 1,080
GoodsworthRs7, 000soldtoKrishnaforRs9, 000plusIGST@12

60
iii Bank A/c Dr. 11,200
To Sales A/c 10,000
To Output IGST A/c 1,200
GoodsworthRs10, 000soldandIGSTcharged@12

E3
iv Bank A/c Dr. 5,000
To Cash A/c 5,000
CashdepositedintoSavingsA/c

v Machinery A/c Dr. 4,00,000

To Advance 40,000
onorder
To Capital A/c
Note
To Bank A/c
ID 1,60,000

2,00,000
U
Machinerypurchasedforexchangeofpersonalmachineandbyissuingcheque

vi Machinery A/c Dr. 2,500

YG

To Cash A/c 2,500

Wagespaidforinstallationofmachine

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.
D

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
U

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.
ST

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.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount 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 BalancingFigure 3,98,800
Beingthebalancesofassets, liabilitiesandcapitalbroughtforward

Therefore, the amount of Capital of Rahman on 1st 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

60
1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.
Solution:
Journal
Debit Credit
Date Particulars L.F. Amount Amount

E3
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
To Bills Payable A/c
To Creditors A/c
To Loan from Suresh A/c
ID Dr. 2,40,000
48,000
96,000
1,80,000
U
To Capital A/c BalancingFigure 6,00,000
Beingthebalancesofassets, liabilitiesandcapitalbroughtforward
YG

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

Question:32
Pass the Opening Entry from the following Balance Sheet as at 31st March, 2019 of Vikas:
D

Liabilities Assets
Capital A/c: Land and Building 1,50,000
Opening Balance 5,05,115 Plant and Machinery 2,50,750
U

Add: Profit for the 1,20,115 Chandra & Sons 71,270

year
6,25,230 Closing Stock 56,250
ST

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

Solution:
Books of Vikas
Journal
Debit Credit
Date Particulars L.F. Amount 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
Openingentrymade

60
E3
ID
U
YG
D
U
ST