Question No 1 Chapter No 8 - T.S. Grewal 11 Class

Question No 1 Chapter No 8

Table of Contents

Solution of Question No 1 Chapter No 8: –

Explanation of All Transactions with images: –

T.S. Grewal’s Double Entry Book Keeping (Class +1) – Solution

Following transactions of Ramesh for April 2018 are given Below, Journalise them.

2018		Rs.
Apr 01	Ramesh started the business with cash	1,00,000
Apr 02	Paid into bank	20,000
Apr 03	Bought goods for cash	50,000
Apr 04	Drew cash from the bank for office use	10,000
Apr 13	Sold goods to Krishna on credit	15,000
Apr 20	Bought goods from Shyam on credit	22,500
Apr 24	Received from Krishna	12,500
	Allowed him discount	500
Apr 28	Paid cash to Shyam	21,500
	Discount received	1,000
Apr 28	Krishna returned goods	2000
Apr 30	Cash sales for the month	80,000
Apr 30	Paid rent	5,000
Apr 30	Paid Salary	10,000

Solution of Question No 1 Chapter No 8: –

Date	Particulars		L.F.	Debit	Credit
2018
April 1	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Being Ramesh started the business with cash)

April 2	Bank A/c	Dr.		20,000
	To Cash A/c				20,000
	(Being Cash paid into the bank)

April 3	Purchase A/c	Dr.		50,000
	To Cash A/c				50,000
	(Being goods purchased for cash)

April 4	Cash A/c	Dr.		10,000
	To Bank A/c				10,000
	(Being cash withdrawal from Bank)

April 13	Krishna A/c	Dr.		15,000
	To Sales A/c				15,000
	(Being goods sold to Krishna on credit)

April 20	Purchase A/c	Dr.		22,500
	To Shyam A/c				22,500
	(Being Bought goods from Shyam on credit)

April 24	Cash A/c	Dr.		12,500
	Discount Allowed A/c	Dr.		500
	To Krishna A/c				13,000
	(Being Cash received from Krishna and allowed his discount)

April 28	Shyam A/c	Dr.		22,500
	To Cash A/c				21,500
	To Discount Received A/c				1,000
	(Being paid cash to Shyam and received discount)

April 28	Sale Return A/c	Dr.		2,000
	To Krishna A/c				2,000
	(Being Goods returned by Krishna)

April 30	Cash A/c	Dr.		80,000
	To Sales A/c				80,000
	(Being goods sold against cash)

April 30	Rent A/c	Dr.		5,000
	To Cash A/c				5,000
	(Being Rent paid)

April 30	Salary A/c	Dr.		10,000
	To Cash A/c				10,000
	(Being salary paid)

Explanation of All Transactions with images: –

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.

Transaction No. 1

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	Personal	Personal Account	Giving cash to business	Owner is Giver	Credit

Transaction No. 2

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 giving by business	Cash goes out	Credit
Bank	Personal	Personal Account	Receiving cash from business	Bank is Receiver	Debit

Transaction No. 3

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
Cash	Assets	Real Account	Cash paid to Seller	Cash Goes Out	Credit

Transaction No. 4

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
Bank	Personal	Personal Account	Giving cash to business	Bank is Giver	Credit

Transaction No. 5

Name of Account

Type of Account

Rule which will Applicable

What happen in the transaction

Rule applied

According to Rule It will be

Sales a/c

(Goods)

Assets

Real Account

Goods giving to Krishna

Goods Goes out

Credit

Krishna

Personal

Personal Account

Krishna Receiving goods

Krishna Receiver

Debit

Transaction No. 6

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
Shyam	Personal	Personal Account	Shyam giving goods	Shyam Giver	Credit

Transaction No. 7

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
Krishna	Personal	Personal Account	Krishna Receiving goods	Krishna Receiver	Credit
Discount allowed	Expenses	Nominal Account	Discount allowed to Krishna	All Expenses and loss	Debit

Transaction No. 8

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 paid by business	Cash goes out	Credit
Shyam	Personal	Personal Account	Shyam received cash	Shyam Receiver	Debit
Discount allowed	Gain	Nominal Account	Discount received from Shyam	All income and gain	Credit

Transaction No. 9

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Sale Return (Goods)	Assets	Real Account	Goods received by business	Goods comes in	Debit
Krishna	Personal	Personal Account	Krishna giving	Krishna Giver	Credit

Transaction No. 10

Name of Account

Type of Account

Rule which will Applicable

What happen in the transaction

Rule applied

According to Rule It will be

Sales a/c

(Goods)

Assets

Real Account

Goods giving by Business

Goods Goes out

Credit

Cash

Assets

Real Account

Cash received by business

Cash Comes In

Debit

Transaction No. 11

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	Expense	Nominal Account	Business paying rent	All expenses & losses	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	Credit

Transaction No. 12

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	Expense	Nominal Account	Business paying Salary	All expenses & losses	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	Credit