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Question No 2 Chapter No 11
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Verma Bros., Kolkata carries on business as a wholesale cloth dealer. From the following write up their purchases book for January 2018 :
| 2018 | |
| Jan.3 | Purchased on credit from M/s Birla Mills, Kolkata |
| 100 pieces long cloth @ Rs800 each | |
| 50 pieces shirting @ Rs500 each | |
| CGST and SGST payable @6% each | |
| Jan.8* | Purchased for cash from M/s Ambika Mills, Ahmedabad |
| 50 pieces muslin @ 1,000 each | |
| IGST payable @12% | |
| Jan.15 | Purchased on credit from M/s Arvind Mills, Ahmedabad |
| 20 pieces coating @ Rs 2,000 each | |
| 10 Pieces shirting @ Rs 500 each | |
| IGST payable @12% | |
| Jan.20* | Purchased on credit from M/s Bharat typewriters Ltd., Kolkata: |
| 5 typewriters @1,400 each | |
| CGST and SGST payable @6% each |
The solution of Question No 2 Chapter No 11: –
In the Book of Verma Bros., Kolkata
| Purchase Book | |||||||
| Date | Particular | Detail | Cost | Input CGST | Input SGST | Input ISGT | Total |
| 2018 Jan | |||||||
| 3 | M/s Birla Mills, Kolkata | ||||||
| 100 pieces long cloth @Rs 800 each | 80,000 | ||||||
| 50 pieces shirting @ Rs 500 each | 25,000 | ||||||
| 1,05,000 | |||||||
| Add: CGST | 6,300 | ||||||
| Add: CGST | 6,300 | ||||||
| 1,17,600 | 1,05,600 | 6,300 | 6,300 | 1,17,600 | |||
| 15 | M/s Arvind mills, Ahmedabad: | ||||||
| 20 pieces Coating @ Rs 2,000 each | 40,000 | ||||||
| 10 pieces shirting @ Rs 500 each | 5,000 | ||||||
| 45,000 | |||||||
| Add: IGST | 5,400 | ||||||
| 50,400 | 45,000 | 5,400 | 50,400 | ||||
| 1,50,000 | 6,300 | 6,300 | 5,400 | 1,68,000 | |||
* Jan8 Purchased on credit from M/s Arvind Mills, Ahmedabad
50 pieces muslin @ 1,000 each
IGST payable @12%
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In this transaction, the payment made in cash that is why it will not be recorded in the purchased book because only credit transactions are recorded in the purchased book
* Jan.20 Purchased on credit from M/s Bharat typewriters Ltd., Kolkata:
5 typewriters @1,400 each
CGST and SGST payable @6% each
In this transaction, the typewrite will be treated as an asset for the business not a good because a business deal with cloths, but only purchased of goods are record in the purchase book so it will not be recorded in the purchased book
To understand more about cash book please check out following links: –
Cash Book | Types of Cash Book | Subsidiary Books
Single Column Cash Book | Explained with Example
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Double Column Cash Book | Explained with Example
Triple Column Cash Book | Explained with Example
Petty Cash Book | Example | Subsidiary Books
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Also, Check out the solved question of previous Chapters: –
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
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