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

Question No 11 Chapter No 8

Following transactions of Ramesh, Delhi for April,2018 are given below. Journalise them:

2018		Rs
Apr-01	Ramesh Started business with cash	1,00,000
Apr-02	Deposited cash to open a current account with bank	70,000
Apr-03	Brought goods for cash	5,000
Apr-13	Sold Goods to Krishna, Panipat(Haryana)on Credit	1,500
Apr-20	Brought goods from Atul, Karnal on Credit	2,250
Apr-24	Received from Krishna	1,450
	Allowed him discount	50
Apr-28	Paid cash to Shyam	2,150
	Discount allowed by him	100
Apr-30	Cash sales for the month	8,000
Apr-30	Paid Rent	500
Apr-30	Paid Salaries	10,000

CGST and SGST @6% each on intra-state sale and purchase. IGST is lived @ 12% on inter-state sale and purchase.

Solution of Question No 11 Chapter No 8: –

In the Books of Ramesh , Delhi

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

April 2	Bank A/c	Dr.		70,000
	To Cash A/c				70,000
	(Being opened a current account in bank)

April 3	Purchase A/c	Dr.		5,000
	CGST Input A/c	Dr.		300
	SGST Input A/c	Dr.		300
	To Cash A/c				5,600
	(Being goods purchased for Cash.)

April 13	Krishna A/c	Dr.		1,680
	To Sales A/c				1,500
	To IGST Output A/c				180
	(Being goods sold to Krishna)

April 20	Purchase A/c	Dr.		2,250
	IGST Input A/c	Dr.		270
	To Atul A/c				2,520
	(Being goods purchased from Atul inter-state)

April 24	Cash A/c	Dr.		1,450
	Discount Allowed A/c	Dr.		50
	To Krishna A/c				1,500
	(Being payment received from Krishna and allow him discount)

April 28	Shyam A/c	Dr.		2,250
	To Cash A/c				2,150
	To Discount Received A/c				100
	(Being cash paid to Shyam)

April 28	Cash A/c	Dr.		8,960
	To Sales A/c				8,000
	To CGST Output A/c				480
	To SGST Output A/c				480
	(Being goods sold for cash)

April 30	Rent A/c	Dr.		500
	To Cash A/c				500
	(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.

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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 (owner)	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
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
Cash	Assets	Real Account	Payment made in cash	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
Krishna	Person	Personal Account	Goods received	Ram is 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

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
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
Mr. Atul	Person	Personal Account	Making payment	Atul is Giver	Credit

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
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
Discount Allowed	Loss	Nominal Account	Discount allowed	All expenses and losses	Debit
Krishna	Person	Personal Account	Making payment	Krishna is giver	Credit

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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
Mr. Shyam	Person	Personal Account	Receiving payment	Shyam is 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

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 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

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
Rent A/c	Expense	Nominal Account	Expenses incurred	All Expenses and Losses	Debit
Cash	Assets	Real Account	Payment made in cash	Cash goes out	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
Salary A/c	Expense	Nominal Account	Expenses incurred	All Expenses and Losses	Debit
Cash A/c	Assets	Real Account	Payment made in cash	Cash goes out	Credit

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Question No 11 Chapter No 8 – T.S. Grewal 11 Class