Question No 12 Chapter No 8 - T.S. Grewal 11 Class

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.

Solution of Question No 12 Chapter No 8:

In the Books of Satish, Noida(UP)

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.		2,500
	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.)

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 (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
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

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
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

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
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

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
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

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
Postage	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	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
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. 8

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

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
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

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
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

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
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

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
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

Transaction No. 13

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

Transaction No. 14

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

Question No 12 Chapter No 8 – T.S. Grewal 11 Class