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

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

2018   Rs
Jan-01 Started business with cash  50,000
Jan-02 Opened a Current Account by personal Cheque 3,50,000
Jan-10 Purchase Machinery against cheque 1,00,000
Jan-15 Paid wages for installation of Machinery 2,000
Jan-20 Purchased timber from Singh & Co. Ludhiana(Punjab) of the list price of Rs 20,000  
  Allowed 10% trade discount  
Jan-25 Out of the above, timber used for furnishing the office 5,000
Jan-31 Sold timber to Rakesh of the list price Rs 10,000 and allowed him 10% discount   
Feb-10 Issued to Singh & Co. a cheque in full settlement.  20,000
Feb-15 Received from Rakesh in full settlement  10,000
Feb-20 Paid Wages  15,000
Feb-28 Issued 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. Debit Credit
Jan 1 Cash A/c Dr.   50,000  
             To Capital A/c     50,000
  (Being commenced business with cash.)      
           
Jan 2 Bank A/c Dr.   3,50,000  
             To Capital A/c     3,50,000
  (Being opened a current account by personal cheque)      
           
Jan 10 Machinery A/c Dr.   1,00,000  
  CGST Input A/c Dr.   6,000  
  SGST Input A/c Dr.   6,000  
            To Bank A/c     1,12,000
  (Being Machinery purchased by cheque.)      
           
Jan 15 Machinery A/c Dr.   2,000  
            To Cash A/c     2,000
  (Being wages paid for installation of Machine.)      
           
Jan 20 Purchase A/c Dr.   18,000  
  CGST Input A/c Dr.   1,080  
  SGST Input A/c Dr.   1,080  
            To Singh & CO. Ludhiana A/c     20,160
  (Being purchased goods from Singh & CO. Ludhiana.)      
           
Jan 25 Office furniture A/c Dr.   5,000  
            To Purchase A/c     5,000
  (Being wages paid for installation of Machine.)      
           
Jan 31 Rakesh A/c Dr.   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 10 Singh & Co. Ludhiana A/c Dr.   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 15 Cash A/c Dr.   10,000  
  Discount Allowed A/c Dr.   80  
            To Rakesh A/c       10,080
  (Being payment received from Rakesh and allow discount)      
           
Feb 20 Wages A/c Dr.   15,000  
            To Cash  A/c       15,000
  (Being wages paid)      
           
Feb 28 Rent A/c Dr.   5,000  
            To Bank A/c       5,000
  (Being Rent paid by cheque.)      
         

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.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 1 Question No.14 – 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.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 2 Question No.14 – 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.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 3 Question No.14 – 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
Machinery   Assets   Real Account   Machinery purchased 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   Payment made with cheque Bank is Giver Credit

Transaction No. 4

Transaction No. 4 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 4 Question No.14 – 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
Machinery  Assets   Real Account   Machinery purchased Comes In Debit
 Cash Assets  Real Account Payment made in cash Cash goes out Credit

Transaction No. 5

Transaction No. 5 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 5 Question No.14 – 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
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 
M/s Singh & Co.  A/Person   Personal Account  Goods given They are Giver Credit

Transaction No. 6

Transaction No. 6 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 6 Question No.14 – 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
Machinery  Assets   Real Account   Made Furniture Goods Comes in Fixed assets  Debit
Purchase (Goods)   Assets   Real Account   Goods used as for assets Goods goes out from stock  Credit

Transaction No. 7

Transaction No. 7 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 1 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 7 Question No.14 – 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
Rakesh 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

Transaction No. 8 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 8 Question No.14 – 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 Singh & Co. . A/Person Personal Account Receiving  payment They are Receiver Debit
Bank A/Person  Personal  Account   Bank issuing cheque  Bank is giver Credit
Discount Received  gain Nominal Account Discount received All income and gains Credit

Transaction No. 9

Transaction No. 9 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 9 Question No.14 – 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
Discount Allowed Loss  Nominal Account loss incurred   All Expenses and Losses  Debit
Ramesh & Co. A/Person  Personal Account making  payment He is giver Credit

Transaction No. 10

Transaction No. 10 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 10 Question No.14 – 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
Wages 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. 11

Transaction No. 11 Question No.14 Chapter No.8 T.S. Grewal 1 Book 2019 - Question No 14 Chapter No 8 - T.S. Grewal 11 Class
Transaction No. 11 Question No.14 – 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  Exp Nominal Account Expenses incurred   All Expenses and Losses  Debit
Bank A/Person  Personal  Account   Bank issuing cheque  Bank is giver Credit

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