Question No 15 Chapter No 8 - T.S. Grewal 11 Class

Question No 15 Chapter No 8

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

2018		Rs
Apr 01	Suresh paid into Bank as capital	60,000
Apr 02	He bought goods for cheque	24,000
Apr 03	Sold to Mukand & co., Delhi	6,700
Apr 04	Sold goods for cash	10,900
Apr 05	Paid Sundry Expenses in Cash	3,000
Apr 08	Paid for office Furniture and fittings by cheque	4,000
Apr 09	Bought goods from Ramesh and Bros., Faridabad(Haryana)	10,600
Apr 10	Sold to Mahendra of Delhi	18,700
Apr 11	Returned goods to Ramesh & Bors.	1,500
Apr 12	Issued Cheque to Ramesh & Bros. in full settlement	9,000
Apr 14	Sold goods for cash	4,900
Apr 30	Bank charged Interest	200
Apr 30	Borrowed from Ridhi @ 10% per annum interest	50,000
Apr 30	Received from Mahendra on account	6,000
Apr 30	Sold Household furniture and paid the amount into business	2,000
Apr 30	Sold goods costing Rs 5000 to Anita for cash at a profit of 20% on cost, less 20% trade discount.
Apr 30	Sold goods costing Rs 20,000 to Sunil at a profit of 20% on sale less 20% trade discount and paid cartage Rs 150(to be charged from customer)

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 15 Chapter No 8:

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

Date	Particulars		L.F.	Debit	Credit
April 1	Bank A/c	Dr.		60,000
	To Capital A/c				60,000
	(Being started business with opening a bank account)

April 2	Purchase A/c	Dr.		24,000
	CGST Input A/c	Dr.		1,440
	SGST Input A/c	Dr.		1,440
	To Bank A/c				26,880
	(Being goods purchased by cheque.)

April 3	Mukand & Co. A/c	Dr.		7504
	To Sales A/c				6,700
	To CGST Output A/c				402
	To SGST Output A/c				402
	(Being goods sold to Mukand & Co.)

April 3	Cash A/c	Dr.		12,208
	To Sales A/c				10,900
	To CGST Output A/c				654
	To SGST Output A/c				654
	(Being goods sold for cash)

April 5	Sundry Expenses A/c	Dr.		3,000
	To Cash A/c				3,000
	(Being Sundry Expenses paid.)

April 8	Office Furniture and Fitting A/c	Dr.		4,000
	CGST Input A/c	Dr.		240
	SGST Input A/c	Dr.		240
	To Bank A/c				4,480
	(Being paid for office furniture and fitting)

April 9	Purchase A/c	Dr.		10,600
	IGST Input A/c	Dr.		1,272
	To Ramesh and Bros., A/c				11,872
	(Being purchased goods from Ramesh and Bros., Faridabad)

April 10	Mahendra A/c	Dr.		20,944
	To Sales A/c				18,700
	To CGST Output A/c				1,122
	To SGST Output A/c				1,122
	(Being goods sold to Mahendra )

April 11	Ramesh and bros. A/c	Dr.		1,680
	To Purchase Return A/c				1,500
	To IGST Output A/c				180
	(Being goods returned to Ramesh and bros )

April 11	Ramesh and bros. A/c	Dr.		10,192
	To Bank A/c				9,000
	To Discount Received A/c				1,192
	(Being goods returned to Ramesh and bros )

April 12	Cash A/c	Dr.		10,000
	Discount Allowed A/c	Dr.		80
	To Rakesh A/c				10,080
	(Being paid to Ramesh and bros. by cheque and received discount )

April 14	Cash A/c	Dr.		5,488
	To Sales A/c				4,900
	To CGST Output A/c				294
	To SGST Output A/c				294
	(Being goods sold for cash)

April 31	Interest A/c	Dr.		200
	To Bank A/c				200
	(Being bank charge interest.)

April 30	Cash A/c	Dr.		50,000
	To Loan from Ridhi A/c				50,000
	(Being borrowed from Ridhi)

April 30	Cash A/c	Dr.		6,000
	To MahendraA/c				6,000
	(Being payment received from Mahendra)

April 30	Cash A/c	Dr.		2,000
	To Capital A/c				2,000
	(Being owner invested further capital.)

April 30	Cash A/c	Dr.		5,376
	To Sales A/c				4,800
	To CGST Output A/c				288
	To SGST Output A/c				288
	(Being goods sold to Anita for cash)

April 30	Sunil A/c	Dr.		22,550
	To Sales A/c				20,000
	To CGST Output A/c				1,200
	To SGST Output A/c				1,200
	To Cash A/c				150
	(Being goods sold to Sunil and cartage paid which charges from Sunil)

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
Bank	Artificial Person	Personal Account	Bank receiving cash	Bank is receiver	Debit
Capital (Owner)	Personal	Personal Account	Depositing cash into business bank account	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
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
Bank A/c	A/ Person	Personal Account	Payment made with cheque	Bank 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
Mukand & Co	A/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. 4

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. 5

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Sundry Expenses	Expense	Nominal Account	Expenses incurred	All Expenses and Losses	Debit
Cash	Assets	Real Account	Payment made in cash	Cash goes out	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	furniture received	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
M/s Singh & Co.	A/Person	Personal Account	Goods given	They are 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
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
Ramesh and Bros.	A/ Person	Personal Account	Giving goods `	They are giver	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
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. 9

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Purchase Returned (Goods)	Assets	Real Account	Goods returned by business	Goods goes out	Credit
CGST Input A/c	Income	Nominal Account	Tax collected from buyer	All income and gains	Credit
SGST Input A/c	Income	Nominal Account	Tax collected from buyer	All income and gains	Credit
Ramesh and Bros.	A/Person	Personal Account	Goods received	They are receiver	Debit

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
Bank	A/Person	Personal Account	Bank issuing cheque	Bank is giver	Credit
Discount Received	gain	Nominal Account	Discount received	All income and gains	Credit
Ramesh and Bros.	A/Person	Personal Account	Goods received	They are receiver	Debit

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
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. 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 giving by business	Cash goes out	Credit
Bank	Personal	Personal Account	Receiving cash from business	Bank is Receiver	Debit

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
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
Ridhi	Person	Personal Account	Making payment to business	She is 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
Cash	Assets	Real Account	Cash received by business	Cash Comes In	Debit
Mahendra	Person	Personal Account	Making payment to business	he is giver	Credit

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Transaction No. 15

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	Depositing cash into business bank account	Owner is Giver	Credit

Transaction No. 16

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. 17

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Sunil	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
Cash	Assets	Real Account	Cash giving by business	Cash goes out	Credit

Question No 15 Chapter No 8 – T.S. Grewal 11 Class