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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question No 12 Chapter No 8
Journalise the following transactions of Satish, Noida(UP):
| 2018 | Rs | |
| Jan-01 | Started business with cash | 40,000 |
| Jan-02 | Opened Bank account by cheque from Saving Account | 60,000 |
| Jan-03 | Brought goods from M/s S. Singh & Co., Delhi | 20,000 |
| Jan-04 | Introduced additional Capital by cheque | 5,000 |
| Jan-04 | Purchased computer against cheque from Computer Mart, Noida | 15,000 |
| Jan-06 | Paid for postage | 150 |
| Jan-08 | Sold goods for cash | 4,000 |
| Jan-09 | Sold goods to M/s Sharda & Co., Delhi | 10,000 |
| Jan-15 | Paid to M/s S. Singh & Co. | 19,500 |
| Discount allowed by them | 500 | |
| 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 | 9,750 |
| 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 private use | 3,500 |
CGST and SGST @6% each on intra-state sale and purchase. IGST is lived @ 12% on inter-state sale and purchase.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Jan 1 | Cash A/c | Dr. | 40,000 | ||
| To Capital A/c | 40,000 | ||||
| (Being commenced business with cash.) | |||||
| Jan 2 | Bank A/c | Dr. | 60,000 | ||
| To Capital A/c | 60,000 | ||||
| (Being opened a current account by cheque from saving account) | |||||
| Jan 3 | Purchase A/c | Dr. | 20,000 | ||
| IGST Input A/c | Dr. | 2,400 | |||
| To M/s S. Singh & Co. A/c | 22,400 | ||||
| (Being goods purchased from M/s S. Singh & Co.) | |||||
| Jan 4 | Bank A/c | Dr. | 5,000 | ||
| To Capital A/c | 5,000 | ||||
| (Being additional capital introduced into the business) | |||||
| Jan 4 | Computer A/c | Dr. | 15,000 | ||
| CGST Input A/c | Dr. | 900 | |||
| SGST Input A/c | Dr. | 900 | |||
| To Bank A/c | 16,800 | ||||
| (Being computer purchased from Computer Mart, Noida and payment made by cheque.) | |||||
| Jan 6 | Postage A/c | Dr. | 150 | ||
| To Cash A/c | 150 | ||||
| (Being Postage paid.) | |||||
| Jan 8 | Cash A/c | Dr. | 4,480 | ||
| To Sales A/c | 4,000 | ||||
| To CGST Output A/c | 240 | ||||
| To SGST Output A/c | 240 | ||||
| (Being goods sold for cash) | |||||
| Jan 9 | M/s Sharda & Co. A/c | Dr. | 11,200 | ||
| To Sales A/c | 10,000 | ||||
| To IGST Output A/c | 1,200 | ||||
| (Being goods sold to M/s Sharda & Co.) | |||||
| Jan 15 | M/s S. Singh & Co. A/c | Dr. | 20,000 | ||
| To Cash A/c | 19,500 | ||||
| To Discount Received A/c | 500 | ||||
| (Being payment made to M/s S. Singh & Co and receive discount) | |||||
| Jan 25 | M/s Ray & Co. A/c | Dr. | 6,272 | ||
| To Sales A/c | 5,600 | ||||
| To IGST Output A/c | 672 | ||||
| (Being goods sold to M/s Ray & Co.) | |||||
| Jan 27 | Cash A/c | Dr. | 9,750 | ||
| Discount Allowed A/c | Dr. | 250 | |||
| To M/s Sharda & Co. A/c | 10,000 | ||||
| (Being payment received from Sharda & Co.and allow him discount) | |||||
| Jan 31 | Electricity Charges A/c | Dr. | 1,000 | ||
| To Cash A/c | 1,000 | ||||
| (Being Rent paid.) | |||||
| Jan 31 | Rent A/c | Dr. | 3,500 | ||
| Drawing A/c | Dr. | 2,500 | |||
| To Cash A/c | 5,000 | ||||
| (Being Rent paid for the building. Half of the building is used by the proprietor for residential use.) | |||||
| Jan 31 | Drawing A/c | Dr. | 2,500 | ||
| To Cash A/c | 2,500 | ||||
| (Being cash withdrawal by owner for personal use.) | |||||
This is not a part of the solution, So you don't have to write it in the exam. So, why we explained if it is not needed. Because This explanation will help you to understand all transactions with logic and you don't need to remember all the transactions but just understand and remember the logic use behind it.
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Cash |
Assets |
Real Account |
Cash received by business |
Cash Comes In |
Debit |
|
Capital (owner) |
Personal |
Personal Account |
Giving cash to business |
Owner is Giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Bank |
Artificial Person |
Personal Account |
Bank receiving cheque |
Bank is receiver |
Debit |
|
Capital (Owner) |
Personal |
Personal Account |
Depositing cash into business bank account |
Owner is Giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Purchase (Goods) |
Assets |
Real Account |
Goods received by business |
Goods comes in |
Debit |
|
IGST Input A/c |
Expenses |
Nominal Account |
Tax collected from buyer |
All Expenses and losses |
Debit |
|
M/s S. Singh & Co |
A/Person |
Personal Account |
Goods given |
S Singh is Giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Bank |
Artificial Person |
Personal Account |
Bank receiving cheque |
Bank is receiver |
Debit |
|
Capital (Owner) |
Personal |
Personal Account |
Depositing cash into business bank account |
Owner is Giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Computer |
Assets |
Real Account |
Computer received by business |
Computer comes in |
Debit |
|
CGST Input A/c |
Expenses |
Nominal Account |
Tax collected from buyer |
All Expenses and losses |
Debit |
|
SGST Input A/c |
Expenses |
Nominal Account |
Tax collected from buyer |
All Expenses and losses |
Debit |
|
Bank A/c |
A/ Person |
Personal Account |
Cash paid by business by cheque |
Bank Giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Postage |
Expenses |
Nominal Account |
Expenses Incurred |
All Exp. or Loss |
Debit |
|
Cash |
Assets |
Real Account |
Cash paid by business |
Cash goes out |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Cash |
Assets |
Real Account |
Cash received by business |
Cash Comes In |
Debit |
|
Sales a/c (Goods) |
Assets |
Real Account |
Goods giving by Business |
Goods Goes out |
Credit |
|
CGST Output A/c |
Income |
Nominal Account |
Tax collected from buyer |
All income and gains |
Credit |
|
SGST Output A/c |
Income |
Nominal Account |
Tax collected from buyer |
All income and gains |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Sharda & Co. |
A/Person |
Personal Account |
Goods received |
They are receiver |
Debit |
|
Sales a/c (Goods) |
Assets |
Real Account |
Goods giving by Business |
Goods Goes out |
Credit |
|
CGST Output A/c |
Income |
Nominal Account |
Tax collected from buyer |
All income and gains |
Credit |
|
SGST Output A/c |
Income |
Nominal Account |
Tax collected from buyer |
All income and gains |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
M/s S. Singh & Co. |
A/Person |
Personal Account |
Receiving payment |
They are Receiver |
Debit |
|
Cash |
Assets |
Real Account |
Payment made in cash |
Cash goes out |
Credit |
|
Discount Received |
gain |
Nominal Account |
Discount received |
All income and gains |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Ray & Co. |
A/Person |
Personal Account |
Goods received |
They are receiver |
Debit |
|
Sales a/c (Goods) |
Assets |
Real Account |
Goods giving by Business |
Goods Goes out |
Credit |
|
CGST Output A/c |
Income |
Nominal Account |
Tax collected from buyer |
All income and gains |
Credit |
|
SGST Output A/c |
Income |
Nominal Account |
Tax collected from buyer |
All income and gains |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Bank |
Artificial Person |
Personal Account |
Bank receiving cheque |
Bank is receiver |
Debit |
|
Discount Allowed |
Loss |
Nominal Account |
Discount allowed |
All expenses and losses |
Debit |
|
Sharda & Co. |
Artificial Person |
Personal Account |
making payment with cheque |
They are giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Electricity Charges A/c |
Expenses |
Nominal Account |
Expenses Incurred |
All Exp. or Loss |
Debit |
|
Cash |
Assets |
Real Account |
Cash paid by business |
Cash goes out |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Rent A/c |
Expenses |
Nominal Account |
Expenses Incurred |
All Exp. or Loss |
Debit |
|
Drawing A/c |
Person (Owner) |
Personal Account |
Rent of building paid (personal used) |
owner received benefits |
Debit |
|
Bank A/c |
Artificial Person |
Personal Account |
Cash paid by business by cheque |
Bank Giver |
Credit |
| Name of Account | Type of Account | Rule which will Applicable | What happen in the transaction | Rule applied | According to Rule It will be |
|---|---|---|---|---|---|
|
Drawing A/c |
Person (Owner) |
Personal Account |
Cash withdrawal for personal use |
owner receiver |
Debit |
|
Cash A/c |
Assets |
Real Account |
Cash paid by business |
Cash goes out |
Credit |
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Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question No 12 Chapter No 8 - T.S. Grewal 11 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 11 Class Financial Accounting.
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