Question No 2 Chapter No 8 - T.S. Grewal 11 Class

Table of Contents

Solution of Question No 2 Chapter No 8: –

Explanation of All Transactions with images: –

T.S. Grewal’s Double Entry Book Keeping (Class +1) – Solution

Question No 2 Chapter No 8

Journalise the following transactions of Mr. Rahul

2018		Rs.
Jan. 1	Rahul started the business with cash	1,00,000
Jan. 2	Paid into bank	60,000
Jan. 3	Bought goods from M/s Singh & Co. on credit	20,000
Jan. 3	Paid Cartage	300
Jan. 4	Purchased Furniture	2,000
Jan. 4	Placed an order for HP Printer for Rs 15,000 amount Advance	5,000
Jan. 4	Purchased Calculator	1,000
Jan. 4	Purchased computer through cheque	13,000
Jan. 6	Paid for postage	150
Jan. 8	Sold goods for cash	4,000
Jan. 9	Sold goods on credit to M/s. Sharda & Co.	10,000
Jan. 9	Paid Cartage	200
Jan. 15	Paid to M/s Singh & Co. on Account	17,500
Jan. 25	Sold goods to M/s Ray & Co.	5,600
Jan. 27	Received cheque from M/s Sharda & Co. in full settlement of the amount due from them	9,750
Jan. 31	Paid for electricity charges	1,000
Jan. 31	Paid Salary	1,500
Jan. 31	Paid rent of building by cheque, half of the building is used by the proprietor for residential use	5,000
Jan. 31	Drew for private use	3,500

Solution of Question No 2 Chapter No 8: –

In the books of Mr. Rahul

Date	Particulars		L.F.	Debit	Credit
2018
Jan. 1	Cash A/c	Dr.		1,00,000
	To Capital A/c				1,00,000
	(Being Rahul started business with cash)

Jan. 2	Bank A/c	Dr.		60,000
	To Cash A/c				60,000
	(Being Cash paid into bank)

Jan. 3	Purchase A/c	Dr.		20,000
	To M/s Singh & Co. A/c				20,000
	(Being goods purchased from M/s Singh & Co. on credit)

Jan. 3	Cartage A/c	Dr.		300
	To Cash A/c				300
	(Being paid cartage)

Jan. 4	Furniture A/c	Dr.		2,000
	To Cash A/c				2,000
	(Being furniture purchased)

Jan. 4	Advance to Supplier A/c	Dr.		5,000
	To Cash A/c				5,000
	(Being Placed an order for HP Printer for Rs 15,000 amount Advance)

Jan. 4	Stationery A/c	Dr.		1,000
	To Cash A/c				1,000
	(Being Purchased Calculator)

Jan. 4	Computer A/c	Dr.		13,000
	To Bank A/c				13,000
	(Being purchased computer through cheque)

Jan. 6	Postage A/c	Dr.		150
	To cash A/c				150
	(Being Paid for postage)

Jan. 8	Cash A/c	Dr.		4,000
	To Sales A/c				4,000
	(Being sold goods for cash)

Jan. 9	M/s Sharda & Co. A/c	Dr.		10,000
	To Sales A/c				10,000
	(Being Sold goods on credit to M/s. Sharda & Co.)

Jan. 9	Cartage A/c	Dr.		200
	To Cash A/c				200
	(Being cartage paid)

Jan. 15	M/s Singh & Co. A/c	Dr.		17,500
	To Cash A/c				17,500
	(Being Paid to M/s Singh & Co. on Account)

Jan. 25	M/s Ray & Co. A/c	Dr.		5,600
	To Sales A/c				5,600
	(Being Sold goods to M/s Ray & Co.)

Jan. 25	Bank A/c	Dr.		9,750
	Discount Allowed A/c			250
	To M/s Sharda & Co. A/c				10,000
	(Being payment received from M/s Sharda & Co.)

Jan. 31	Electricity charges A/c	Dr.		1,000
	To cash A/c				1,000
	(Being Electricity charges paid)

Jan. 31	Salary A/c	Dr.		1,500
	To Cash A/c				1,500
	(Being Salary paid)

Jan. 31	Rent A/c	Dr.		2,500
	Drawing A/c	Dr.		2,500
	To Cash A/c				5,000
	(Being Paid rent of building by cheque, half of the building is used by the proprietor for residential use )

Jan. 31	Drawing A/c	Dr.		3,500
	To Cash A/c				3,500
	(Being Drew for private use)

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	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 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
Purchase (Goods)	Assets	Real Account	Goods received by business	Goods comes in	Debit
Singh & Co	Artificial Person	Personal Account	Giving their goods	Giver	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
Cartage	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by business	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
Furniture	Assets	Real Account	Furniture purchased	Comes in	Debit
Cash	Assets	Real Account	Cash paid by business	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
Adv. to supplier	Person	Personal Account	Cash received by supplier	Receiver	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	Credit

Transaction No. 7

Jan. 4 Purchased Calculator 1000 - ransaction No. 7 Question No.2 - Chapter No.8 - T.S. Grewal +1 Book 2019 — Jan. 4 Purchased Calculator 1000 – ransaction No. 7 Question No.2 – 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
Stationery	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	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
Computer	Assets	Real Account	Computer purchased	computer comes in	Debit
Bank A/c	Artificial Person	Personal Account	Cash paid by business by cheque	Bank 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
Postage	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	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

Sales a/c

(Goods)

Assets

Real Account

Goods giving by Business

Goods Goes out

Credit

Cash

Assets

Real Account

Cash received by business

Cash Comes In

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

Sales a/c

(Goods)

Assets

Real Account

Goods giving by Business

Goods Goes out

Credit

M/s. Sharda & Co.

Artificial Person

Personal Account

Goods received by M/s. Sharda & Co.

M/s Singh & Co. is Receiver

Debit

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
Cartage	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	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
Cash	Assets	Real Account	Cash paid by business	Cash goes out	Credit
Singh & Co	Artificial Person	Personal Account	receiving cash	Receiver	Debit

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

Sales a/c

(Goods)

Assets

Real Account

Goods giving by Business

Goods Goes out

Credit

M/s Ray & Co.

Artificial Person

Personal Account

Goods received by M/s Ray & Co.

M/s Ray & Co. is Receiver

Debit

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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
Bank A/c	Artificial Person	Personal Account	Payment received by cheque	Bank is Receiver	Debit
M/s. Sharda & Co.	Artificial Person	Personal Account	Paying cash by M/s. Sharda & Co.	M/s Singh & Co. 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
Electricity Charges A/c	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash	Assets	Real Account	Cash paid by business	Cash goes out	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
Salaries A/c	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Cash A/c	Assets	Real Account	Cash paid by business	Cash goes out	Credit

Transaction No. 18

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	Expenses	Nominal Account	Expenses Incurred	All Exp. or Loss	Debit
Drawing A/c	Person (Owner)	Personal Account	Rent of building paid used personal	owner received benefits	Debit
Bank A/c	Artificial Person	Personal Account	Cash paid by business by cheque	Bank Giver	Credit

Transaction No. 19

Name of Account	Type of Account	Rule which will Applicable	What happen in the transaction	Rule applied	According to Rule It will be
Drawing A/c	Person (Owner)	Personal Account	Cash withdrawal for personal use	owner receiver	Debit
Cash A/c	Assets	Real Account	Cash paid by business	Cash goes out	Credit