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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question No 7 Chapter No 8
Journalise the following transactions:
| (a) | 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 50,000 |
| (b) | Received cash for a bad debt written off last year 25,000 |
| (c) | Rent due to landlord 40,000 |
| (d) | Depreciation on office furniture 5,000 |
| (e) | Salaries due to staff 50,000 |
| (f) | Paid Income tax 1,50,000 |
| (g) | Received commission Rs 25,000, half of which in in advance |
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| (a) | Cash A/c | Dr. | 37,500 | ||
| Bad Debts A/c | Dr. | 12,500 | |||
| To Shyam A/c | 50,000 | ||||
| (Being first and last compensation received from Shyam.) | |||||
| (b) | Cash A/c | Dr. | 25,000 | ||
| To Bad Debts Recovered A/c | 25,000 | ||||
| (Being Received cash for a bad debt written off last year.) | |||||
| (c) | Rent A/c | Dr. | 40,000 | ||
| To outstanding Rent A/c | 40,000 | ||||
| (Being rent due to landlord but not paid.) | |||||
| (d) | Depreciation A/c | Dr. | 5,000 | ||
| To Office Furniture A/c | 5,000 | ||||
| (Being Depreciation charged on Office furniture.) | |||||
| (e) | Salary A/c | Dr. | 50,000 | ||
| To outstanding Salary A/c | 50,000 | ||||
| (Being salary due but not paid.) | |||||
| (f) | Drawing A/c | Dr. | 1,50,000 | ||
| To Cash A/c | 1,50,000 | ||||
| (Being salary due but not paid.) | |||||
| (g) | Cash A/c | Dr. | 25,000 | ||
| To Commission Received A/c | 12,500 | ||||
| To Advance Commission A/c | 12,500 | ||||
| (Being Commission received actual and in advance.) | |||||
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 | Payment received in cash | Cash comes in | Debit |
| Bad debt | Loss | Nominal Account | Loss for not receiving due amount | All Expenses and Losses | Debit |
| Mr. Shyam | Person | Personal Account | Making payment | 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 |
|---|---|---|---|---|---|
| Cash | Assets | Real Account | Payment received in cash | Cash comes in | Debit |
| Bad debts recovered | Gain | Nominal Account | Loss of last year recovered | 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 |
|---|---|---|---|---|---|
| Rent A/c | Loss | Nominal Account | Expenses incurred | All Expenses and Losses | Debit |
| Outstanding Rent A/c | Representative Person | Personal Account | Actually landlord is giving his cash to business. | 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 |
|---|---|---|---|---|---|
|
Depreciation |
Loss |
Nominal |
Value of assets diminished |
All Expenses and Losses |
Debit |
|
Office Furniture |
Assets |
Real |
Assets decreasing |
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 |
|---|---|---|---|---|---|
|
Salary A/c |
Loss |
Nominal Account |
Expenses incurred |
All Expenses and Losses |
Debit |
|
Outstanding Salary A/c |
Representative Persons |
Personal Account |
Actually employees are giving their cash to business. |
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 |
|---|---|---|---|---|---|
|
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 |
| 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 |
Payment received in cash |
Cash comes in |
Debit |
|
Commission |
Income |
Nominal Account |
Business earing Income |
All Income and gains |
Credit |
|
Advance Commission |
Representative Person |
Personal Account |
Making advance payment |
Giver |
Credit |
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Accounting & Commerce Educator
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 7 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.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question No 7 Chapter No 8 - T.S. Grewal 11 Class" instantly.
