Question 6 Chapter 5 - Unimax Publications of Class 11

Question 6 Chapter 5 - Unimax

6.Journalise the following transactions in the books of Verma of Delhi:
(i) Paid Rs. 5,000 in cash as wages on installation of machinery.
(ii) Sold goods to Laxman of Delhi at the list price Rs. 20,000 less trade discount 10% add CGST and SGST@6% each, and allowed cash discount 5%. He paid the amount immediately.
(iii) Sold goods costing Rs. 60,000 to Sham of Kolkata issued invoice at 10% above cost less 5% Trade discount plus IGST 12%.
(iv) Goods valued at Rs. 2,500 distributed from stock as samples, as part of an advertising
campaign. These goods were purchased paying CGST and SGST @ 6% each.
(v) Ranjan , a customer, to whom goods were sold, was allowed rebate of Rs. 2,000 because they Were of poor quality. These goods were sold charging CGST and SGST@ 6% each.
(vi)Sold goods costing Rs. 1,00,000 to Vimal of Delhi at a profit of 25% on sales less 20% Trade Discount plus CGST and SGST@ 6% each and paid cartage Rs. 250 (Not to be charged from Customer).

The solution of Question 6 Chapter 5 - Unimax:

JOURNAL OF VERMA

Date	Particulars		L.F.	Debit	Credit
(i)	Machinery A/c *	Dr.		5,000
	To Cash A/c				5,000
	(Being the wages paid on installation of a machinery)
(ii)	Cash A/c (WN 1)	Dr.		19,152
	Discount Allowed A/c	Dr.		1,008
	To Sales A/c				18,000
	To Output CGST A/c				1,080
	To Output SGST A/c				1,080
	(Being the goods worth 20,000 sold, charged CGST and SGST 6% each, allowed 10% trade discount and 5% Cash discount)
(iii)	Sham A/c	Dr.		70,224
	To Sales A/c				62,700
	To Output IGST A/c				7,524
	(Being the goods supplied of 66,000 (i.e., 60,000+ 10% Of 60,000 plus IGST 12%) allowed 5% trade discount (i.e., 66,000- 3,300))
(iv)	Advertisement A/c	Dr.		2,800
	To Purchases A/c				2,500
	To Input CGST A/c				150
	To Input SGST A/c				150
	(Being the goods distributed as free samples, Input CGST and Input SGST reversed)
(v)	Rebate A/c	Dr.		2,000
	Output CGST A/c	Dr.		120
	Output SGST A/c	Dr.		120
	To Ranjan A/c				2,240
	(Being the rebate allowed, Output CGST and SGST Reversed)
(vi)	Vimal A/c	Dr.		1,12,000
	To Sales A/c				1,00,000
	To Output CGST A/c				6,000
	To Output SGST A/c				6,000
	(Being the goods sold on credit, charging CGST and SGST 6% each)
	Cartage Outwards A/c	Dr.		250
	To Cash A/c				250
	(Being the cartage paid)

Note: Installation charge is a capital expenditure, thus, is debited to the Machinery Account not paid, it being wages paid, which is not subject to levy of GST.
Working Notes :

1. Sale of Goods to Laxman, Delhi :

Trade discount is not shown separately in the books of account.	₹
List Price	20,000
Less : Trade Discount @ 10%	2,000
	18,000
Add: CGST @ 6%	1,080
SGST @ 6%	1,080
	20,160
Less : Cash Discount @ 5%	1,008
Net Amount	19,152

2. Calculation of Sales Price for Transaction (vi)

	₹
Cost of Goods Sold	1,00,000
Add: Profit (25%)	25,000
	1,25,000
Less: Trade Discount (20%)	25,000
Sale Value	1,00,000

This is all about the Question 6 Chapter 5 - Unimax. You can check out the following article to better understand:

Opening Journal Entry – its Rules and Examples 

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Opening Journal Entry – its Rules and Examples - In Hindi

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You can also Check out the solved question of other Chapters: -

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

• Chapter No. 1 – Introduction of Accounting
• Chapter No. 2 – Theory Base of Accounting
• Chapter No. 3 – Vouchers and Transactions
• Chapter No. 4 – Journal
• Chapter No. 5 – Goods and Services Tax (GST) : An Introduction
• Chapter No. 6 – Ledger
• Chapter No. 7 – Special Purpose Book – Cash Book
• Chapter No. 8 – Other Subsidiary Books
• Chapter No. 9 – Trial Balance
• Chapter No. 10 – Rectification of Errors
• Chapter No. 11 – Depreciation
• Chapter No. 12 – Provision and Reserves
• Chapter No. 13 – Bank Reconciliation Statement
• Chapter No. 14 – Bills of Exchange

Students may Choose only one part from the Part II and Part III

Part-II

• Chapter No. 15 – Financial Statements (Without Adjustments)
• Chapter No. 16 – Financial Statements (With Adjustments)
• Chapter No. 17 – Accounts from Incomplete Records – Single Entry System

Part-III

• Chapter No. 18 – Introduction to Computers and Accounting information System
• Chapter No. 19 – Computerised Accounting
• Chapter No. 20 – Accounting Software : Tally
• Chapter No. 21 – Data Base System
• Chapter No. 22 – Concept of Entity and Relationship

You can also Check out the other Books' Solution: -

• Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
• T.S. Grewal’s Double Entry Book Keeping (Class +1) – Solution
• D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution