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

Question No. 12 - Chapter No.8 - T.S. Grewal +1 Book 2019

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

Transaction No. 1 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 1 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 2 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 2 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 3 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 3 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 4 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 4 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 5 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 1 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 5 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 6 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 6 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 7 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 1 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 7 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 8 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 8 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 9 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 9 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 10 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 10 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 11 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 11 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 12 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 12 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 13 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 13 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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

Transaction No. 14 Question No.12 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 12 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 14 Question No.12 – Chapter No.8 – T.S. Grewal +1 Book 2019
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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