Question No 13 Chapter No 8 - T.S. Grewal 11 Class

Question No 13 Chapter No 8

Journalise the following transactions of Satish, Noida(UP):

2017		Rs
Jan 01	Started business with cash	80,000
Jan 01	Cash Paid into bank	50,000
Jan 01	Brought stationery of Rs 300 plus CGST and SGST @6% each for cash
Jan 02	Brought goods of Rs 21,000 plus CGST and SGST @6% each for cash
Jan 05	Sold goods of Rs 7,500 plus CGST and SGST @6% each for cash
Jan 06	Brought office furniture of Rs 5,000 plus CGST and SGST @6% each from Banerjee bros.
Jan 11	Sold goods of Rs 10,000 plus CGST and SGST @6% each to Mahendra
Jan 12	Received cheque from Mahendra for the amount due
Jan 16	Sold goods of Rs 5,000 plus CGST and SGST @6% each to Ramesh & Co.
Jan 20	Brought goods of Rs 20,000 plus IGST @12% from S. Seth & Bros. Delhi
Jan 23	Brought goods of Rs 20,000 plus IGST @12% from S. Narain & Co., Ludhiana (Punjab)
Jan 26	Ramesh & Co. paid on account	2,500
Jan 28	Paid to S. Seth & Bros. by cheque in full settlement	22,000
Jan 31	Rent is due to S. Sharma but not yet paid	1,000

Solution of Question No 13 Chapter No 8:

In the Books of R Singh & Co., Kanpur(UP)

Date	Particulars		L.F.	Debit	Credit
Jan 1	Cash A/c	Dr.		80,000
	To Capital A/c				80,000
	(Being commenced business with cash.)

Jan 1	Bank A/c	Dr.		50,000
	To Cash A/c				50,000
	(Being opened a current account)

Jan 1	Stationery A/c	Dr.		300
	CGST Input A/c	Dr.		18
	SGST Input A/c	Dr.		18
	To Cash A/c				336
	(Being stationery purchased for cash.)

Jan 2	Purchase A/c	Dr.		21,000
	CGST Input A/c	Dr.		1,260
	SGST Input A/c	Dr.		1,260
	To Cash A/c				23,520
	(Being Goods purchased for cash.)

Jan 5	Cash A/c	Dr.		8,400
	To Sales A/c				7,500
	To CGST Output A/c				450
	To SGST Output A/c				450
	(Being goods sold for cash)

Jan 6	Office Furniture A/c	Dr.		5,000
	CGST Input A/c	Dr.		300
	SGST Input A/c	Dr.		300
	To Banerjee Bros A/c				5,600
	(Being Office furniture purchased from Banerjee Bros)
Jan 11	Mahendra A/c	Dr.		11,200
	To Sales A/c				10,000
	To CGST Output A/c				600
	To SGST Output A/c				600
	(Being goods sold to Mahendra)

Jan 12	Bank A/c	Dr.		11,200
	To Mahendra A/c				11,200
	(Being payment received from Mahendra by cheque)

Jan 16	M/s Ramesh & Co. A/c	Dr.		5,600
	To Sales A/c				5,000
	To CGST Output A/c				600
	To SGST Output A/c				600
	(Being goods sold to M/s Ramesh & Co.)

Jan 20	Purchase A/c	Dr.		20,000
	IGST Input A/c	Dr.		2,400
	To S. Seth & Bros., Delhi A/c				22,400
	(Being Goods purchased from S. Seth & Bros., Delhi .)

Jan 23	Purchase A/c	Dr.		20,000
	IGST Input A/c	Dr.		2,400
	To S. Narain & Co., Ludhiana A/c				22,400
	(Being Goods purchased from S. Narain & Co., Ludhiana.)

Jan 26	Cash A/c	Dr.		2,500
	To M/s Sharda & Co. A/c				2,500
	(Being payment received from M/s Ramesh & Co.)

Jan 28	M/s S. Seth & Bros. A/c	Dr.		22,400
	To Cash A/c				22,000
	To Discount Received A/c				400
	(Being payment made to M/s S. Seth & Bros. and receive discount)

Jan 31	Rent A/c	Dr.		1,000
	To Outstanding Rent A/c				1,000
	(Being Rent Due to S. Sharma but not 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 (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 the 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
Stationery	Expenses	Nominal Account	Stationery items purchased	All Expenses and losses	Debit
CGST Input A/c	Expenses	Nominal Account	A tax collected from the buyer	All Expenses and losses	Debit
SGST Input A/c	Expenses	Nominal Account	A tax collected from the 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
Purchase (Goods)	Assets	Real Account	Goods received by business	Goods come in	Debit
CGST Input A/c	Expenses	Nominal Account	A tax collected from the buyer	All Expenses and losses	Debit
SGST Input A/c	Expenses	Nominal Account	A tax collected from the buyer	All Expenses and losses	Debit
Cash	Assets	Real Account	Payment made in cash	Cash goes out	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
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
Sales a/c (Goods)	Assets	Real Account	Goods giving by Business	Goods Go out	Credit
CGST Output A/c	Income	Nominal Account	A tax collected from the buyer	All income and gains	Credit
SGST Output A/c	Income	Nominal Account	A tax collected from the buyer	All income and gains	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
Office Furniture	Assets	Real Account	Office furniture purchased	Furniture 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
Banerjee bros. A/c	A/ Person	Personal Account	Furniture given by them	Bank 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
Mahendra	Person	Personal Account	Goods received	He 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. 8

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
Mahendra	Person	Personal Account	making payment	He is giver	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
Ramesh & 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. 10

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. Seth & Bros.	A/Person	Personal Account	Goods given	They are Giver	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
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. Narain & Co.,	A/Person	Personal Account	Goods given	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
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
Ramesh & Co.	A/Person	Personal Account	making payment	He is giver	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
M/s S. Seth & Bros.	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. 14

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	Expneses	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

Question No 13 Chapter No 8 – T.S. Grewal 11 Class