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Question No 14 Chapter No 8 – T.S. Grewal 11 Class

Question No. 14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Question No. 14 - Chapter No.8 - T.S. Grewal +1 Book 2019

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Question No 14 Chapter No 8

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Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana(Punjab):

2018 Rs
Jan-01Started business with cash 50,000
Jan-02Opened a Current Account by personal Cheque3,50,000
Jan-10Purchase Machinery against cheque1,00,000
Jan-15Paid wages for installation of Machinery2,000
Jan-20Purchased timber from Singh & Co. Ludhiana(Punjab) of the list price of Rs 20,000 
 Allowed 10% trade discount 
Jan-25Out of the above, timber used for furnishing the office5,000
Jan-31Sold timber to Rakesh of the list price Rs 10,000 and allowed him 10% discount  
Feb-10Issued to Singh & Co. a cheque in full settlement. 20,000
Feb-15Received from Rakesh in full settlement 10,000
Feb-20Paid Wages 15,000
Feb-28Issued a cheque for Rs 5,000 in favour of the landlord for rent of February 

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 14 Chapter No 8:

In the Books of Ashoka Furniture Trader, Ludhiana (Punjab)

Date  Particulars
L.F.DebitCredit
Jan 1Cash A/cDr. 50,000 
            To Capital A/c  50,000
 (Being commenced business with cash.)   
      
Jan 2Bank A/cDr. 3,50,000 
            To Capital A/c  3,50,000
 (Being opened a current account by personal cheque)   
      
Jan 10Machinery A/cDr. 1,00,000 
 CGST Input A/cDr. 6,000 
 SGST Input A/cDr. 6,000 
           To Bank A/c  1,12,000
 (Being Machinery purchased by cheque.)   
      
Jan 15Machinery A/cDr. 2,000 
           To Cash A/c  2,000
 (Being wages paid for installation of Machine.)   
      
Jan 20Purchase A/cDr. 18,000 
 CGST Input A/cDr. 1,080 
 SGST Input A/cDr. 1,080 
           To Singh & CO. Ludhiana A/c  20,160
 (Being purchased goods from Singh & CO. Ludhiana.)   
      
Jan 25Office furniture A/cDr. 5,000 
           To Purchase A/c  5,000
 (Being wages paid for installation of Machine.)   
      
Jan 31Rakesh A/cDr. 10,080 
           To Sales A/c   9,000
           To CGST Output A/c   540
           To SGST Output A/c   540
 (Being goods sold to Rakesh)   
      
Feb 10Singh & Co. Ludhiana A/cDr. 20,160 
           To Bank A/c   20,000
           To Discount Received A/c   160
 (Being paid to Singh & Co. by cheque and received discount )   
      
Feb 15Cash A/cDr. 10,000 
 Discount Allowed A/cDr. 80 
           To Rakesh A/c   10,080
 (Being payment received from Rakesh and allow discount)   
      
Feb 20Wages A/cDr. 15,000 
           To Cash  A/c   15,000
 (Being wages paid)   
      
Feb 28Rent A/cDr. 5,000 
           To Bank A/c   5,000
 (Being Rent paid by cheque.)   
     

Explanation of All Transactions with images: –

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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.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 1 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Cash  Assets  Real Account  Cash received by business Cash Comes InDebit
Capital (owner) Personal  Personal Account  Giving cash to businessOwner is GiverCredit

Transaction No. 2

Transaction No. 2 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 2 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
BankArtificial Person  Personal  Account  Bank receiving cheque Bank is receiverDebit
Capital (Owner) Personal  Personal Account  Depositing cash into business bank account Owner is GiverCredit

Transaction No. 3

Transaction No. 3 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 3 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Machinery  Assets  Real Account  Machinery purchasedComes InDebit
CGST Input A/c ExpensesNominal AccountTax collected from buyer All Expenses and lossesDebit 
SGST Input A/c ExpensesNominal AccountTax collected from buyer All Expenses and lossesDebit 
 Bank A/c A/ PersonPersonal Account  Payment made with chequeBank is GiverCredit

Transaction No. 4

Transaction No. 4 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 4 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Machinery Assets  Real Account  Machinery purchasedComes InDebit
 CashAssets Real AccountPayment made in cashCash goes outCredit

Transaction No. 5

Transaction No. 5 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 5 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Purchase (Goods)  Assets  Real Account  Goods received by businessGoods comes in Debit
CGST Input A/c ExpensesNominal AccountTax collected from buyer All Expenses and lossesDebit 
SGST Input A/c ExpensesNominal AccountTax collected from buyer All Expenses and lossesDebit 
M/s Singh & Co. A/Person  Personal Account Goods givenThey are GiverCredit

Transaction No. 6

Transaction No. 6 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 6 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Machinery Assets  Real Account  Made FurnitureGoods Comes in Fixed assets Debit
Purchase (Goods)  Assets  Real Account  Goods used as for assetsGoods goes out from stock Credit

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Transaction No. 7

Transaction No. 7 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 7 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
RakeshPerson  Personal Account Goods received He is  receiverDebit
Sales a/c (Goods)  Assets  Real Account  Goods giving by BusinessGoods Goes outCredit 
CGST Output A/c IncomeNominal AccountTax collected from buyer All income and gains Credit 
SGST Output A/c IncomeNominal AccountTax collected from buyer All income and gains Credit 

Transaction No. 8

Transaction No. 8 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 8 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
 M/s Singh & Co. .A/PersonPersonal AccountReceiving  paymentThey are ReceiverDebit
BankA/Person Personal  Account  Bank issuing cheque Bank is giverCredit
Discount Received gainNominal AccountDiscount receivedAll income and gainsCredit

Transaction No. 9

Transaction No. 9 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 9 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Cash  Assets  Real Account  Cash received by business Cash Comes InDebit
Discount AllowedLoss Nominal Accountloss incurred  All Expenses and Losses Debit
Ramesh & Co.A/Person Personal Accountmaking  paymentHe is giverCredit

Transaction No. 10

Transaction No. 10 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 10 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Wages A/c ExpenseNominal AccountExpenses incurred  All Expenses and Losses Debit
 CashAssets Real AccountPayment made in cashCash goes outCredit

Transaction No. 11

Transaction No. 11 Question No.14 - Chapter No.8 - T.S. Grewal +1 Book 2019
Transaction No. 11 Question No.14 – Chapter No.8 – T.S. Grewal +1 Book 2019
Name of AccountType of AccountRule which will ApplicableWhat happen in the transactionRule appliedAccording to Rule It will be
Rent A/c ExpNominal AccountExpenses incurred  All Expenses and Losses Debit
BankA/Person Personal  Account  Bank issuing cheque Bank is giverCredit

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