# Question No 24 Chapter No 8 – T.S. Grewal 11 Class

Question No. 24 - Chapter No.8 - T.S. Grewal +1 Book 2019

Question No 24 Chapter No 8

Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for Rs 15,000 less Trade Discount 10% and cash discount 3% CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.

### Solution of Question No 24 Chapter No 8: –

Working Note:

Gross Purchase Price = 15,000/-

Tarde Discount = Purchase Price * % of discount
= 15,000 * 10%
= 1,500/-

Net Purchase Price = Gross Purchase Price – Discount
= 15,000 – 1,500
= 13,500/-

Amount of CGST = Net Purchase Price * % of CGST
= 13,500* 6%
= 810/-

Amount of SGST = Net Purchase Price * % of SGST
= 13,500* 6%
= 810/-

Invoice Value = Net Purchase Price + CGST + SGST
= 13,500 + 810 + 810
= 15,120/-

Cash Discount = Invoice Value * % of Discount
= 15,120 * 3%
= 454/-

Cash discount always availed at the time of payment and trade discount is availed at the time of dealing/trading/ Negotiation. So, in this question, we can avail cash discount when payment is made within a specific time limit.

In the Books of Amrit, Delhi

 Date Particulars L.F. Debit Credit Purchase A/c Dr. 13,500 CGST Input A/c Dr. 810 SGST Input A/c Dr. 810 To Add Gel Pens, Delhi A/c 15,120 (Being goods purchased from M/s Add Gel Pens, Delhi ) Add Gel Pens, Delhi A/c Dr. 15,120 To Cash  A/c 14666 To Discount Received A/c 454 (Being payment made to M/s Add Gel Pens, Delhi and receive discount)

### 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 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 Add Gel Pens, Delhi A/Person Personal Account Goods given They are 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 M/s Add Gel Pens, Delhi A/Person Personal Account Receiving  payment They are Receiver Debit Cash Assets Real Account Payment made in cash Cash goes out Credit Discount Received gain Nominal Account Discount received All income and gains Credit

Comment if you have any question.

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